Elon Musk Reportedly Warns Twitter Bankruptcy Possible

(RTTNews) - Elon Musk, in his first meeting with Twitter staff following the acquisition, warned that the social media platform could file for bankruptcy next year, reports said.

The news comes as more and more key employees are leaving Twitter following the recent mass layoff. The U.S. Federal Trade Commission said its watching Twitter with deep concern after the company's top privacy and compliance officers resigned.

During an emergency all-hands meeting at Twitter's San Francisco headquarters, Musk, who is currently serving as Twitter's CEO and sole director, said that "bankruptcy isn't out of the question."

He was responding to an employee who asked about the company's current run rate.

Earlier in that day, Musk had sent an email to Twitter employees, warning that the economic picture ahead is dire. He also ended remote work, telling employees that those not physically present at the office 40 hours a week might as well file their resignation letters.

Twitter previously had allowed employees to work from anywhere, but Musk has been strict about workers returning to the office.

Following last week's mass layoff where nearly 50% Twitter staff lost job, several Twitter executives resigned, including chief information security officer Lea Kissner, head of ad sales Robin Wheeler, and head of Trust and Safety Yoel Roth, among others.

After completing Twitter purchase on October 28, Musk had dismissed the then CEO Parag Agrawal, as well as certain other key executives.

Amid the ongoing issues, various companies are getting concerned over advertising on Twitter under the leadership of Musk. General Motors Co. recently said it has temporarily paused its paid advertising on Twitter saying it wanted more information about Twitter's direction under its new ownership.

Volkswagen, and General Mills are are a few others, who have pulled or paused their advertising campaigns.