Twitter might attract FTC fines for non-compliance.
The world's richest person Elon Musk has warned staff at this newly acquired social media company that bankruptcy was very much a possibility at Twitter. The result has been an exodus of top executives at the company,Nearly two weeks after finally agreeing to acquire Twitter, Musk held an all-hands meeting at the company and once again spoke about the amount of money the company was losing.
, Musk warned that the current cash outflow rate at the company would lead to a negative balance of billions of dollars by 2023. His idea of Twitter Blue subscriptions was the only way to keep the company alive.Advertising revenues have dropped across social media companies such as Meta and YouTube amidst fears of inflation. Although Twitter's advertisement business contributes little to its revenue stream, the flow of money has declined severely after Musk's takeover.
Chief Information Security officer Lea Kissner, chief privacy officer Damien Kieran, and chief compliance officer Marianne Fogarty also left the company earlier in the day,Although the possibility of bankruptcy might be a reason for the departure, Musk's management style might also contribute to the decision to quit.
Last week, Twitter reduced its workforce by half, putting severe pressure on its staff on how it would handle content moderation workload. However, the recent departure of some of the heads of the departments has drawn the ire of the Federal Trades Commission , the second this year.Earlier in May, when Twitter was still working at full strength, the company reached a settlement with the FTC over privacy issues and is required to perform privacy reviews of any changes to its products.
It remains to be seen how much of the bankruptcy of Twitter is the result of its loss of revenues and how much is the result of Musk's haphazardly implemented policies.
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