Beautiful Virgin Islands

Monday, Jul 13, 2026

Elon Musk says Twitter 'may face bankruptcy' as more staff quit and top regulator issues warning

Elon Musk says Twitter 'may face bankruptcy' as more staff quit and top regulator issues warning

Musk appeared to brush off reports of another day of disarray at his new company, tweeting: "Usage of Twitter continues to rise. One thing is for sure: it isn't boring!"
Elon Musk raised the possibility of Twitter going bankrupt as the company endured perhaps its most chaotic day since he took control two weeks ago.

The world's richest man outlined his concerns about the firm's precarious financial position during his first mass call with its remaining employees, having already carried out thousands of sackings.

Twitter endured further departures as reports of the call first emerged, with its head of trust and safety, Yoel Roth, updating his profile to indicate that he had left.

In an earlier staff email, Musk warned Twitter - which he bought for $44bn at the end of October, after spending months trying to get out of it - would not "survive the upcoming economic downturn" without boosting revenue.

Musk wants to do that via the revamped $8-per-month Twitter Blue service, designed to offset falling advertising income as companies fret about his stance on content moderation.

Fears over his approach to user privacy also prompted an intervention by America's Federal Trade Commission on Thursday evening, warning "no chief executive or company is above the law".

Musk himself appeared to brush off reports of another day of disarray at his new company, tweeting: "Usage of Twitter continues to rise. One thing is for sure: it isn't boring!"

Twitter's grim finances

During his meeting with staff on Thursday, Musk reportedly warned Twitter may lose billions of dollars next year.

Bankruptcy was therefore not out of the question, he said, as the company grapples with $13bn (£11bn) of debt after his takeover deal and interest payments totalling almost $1.2bn (£1bn) over the next 12 months.

Those payments exceed Twitter's most recently disclosed cash flow, which was $1.1bn (£900m) at the end of June.

Musk said the firm was losing $4m (£3.4m) each day, largely because of advertisers putting spending on hold due to fears about his "free speech absolutist" position.

His attempted solution, Twitter Blue, has ended up somewhat proving the point. It entitles anyone who signs up to a blue checkmark previously reserved for verified accounts, but has been abused by pranksters posting offensive messages under the guise of Tony Blair, George W Bush, and even Nintendo mascot Super Mario.

The option to sign up has since disappeared from Twitter's iOS app.

 


More staff departures

Musk laid off half of Twitter's 8,000-strong workforce soon after his takeover, having moved even more quickly to dismiss its top executives.

This week has seen even more people leave, chief among them Mr Roth, who has overseen Twitter's response to hate speech, misinformation, and spam.

Mr Roth had been one of the more vocal remaining members of Twitter's top team since Musk's takeover, assuring users and advertisers that the platform was still committed to combating those issues.

His profile changed on Thursday to indicate that he no longer worked at Twitter - he is believed to have resigned.

Earlier in the day, chief information security officer Lea Kissner tweeted that she had quit, while an internal message seen by Reuters news agency said chief privacy officer Marianne Fogarty had also gone.

It came after Musk told staff he was banning working from home, with all workers expected to be in the office for at least 40 hours a week.

Warning from regulator

The exodus of safety, security, and privacy officers saw the US Federal Trade Commission (FTC) express its "deep concern" about developments at Twitter.

In May, Twitter agreed to pay $150m (£128m) to settle allegations by the FTC it misused private user information to target advertising after telling them the data was collected purely for security reasons.

Douglas Farrar, the FTC's director of public affairs, told Reuters: "No CEO or company is above the law, and companies must follow our consent decrees.

"Our revised consent order gives us new tools to ensure compliance, and we are prepared to use them."
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
World Cup Visitors Turn American Big-Box Stores Into Souvenir Stops
Netflix Weighs Always-On Channels, Bundles and Short-Form Video
Passenger Is Pulled Partly Outside Ryanair Jet After Window Fails Mid-Flight
The AI Invoice Shock: Layoffs Didn't Save Managers Money — They Cost Them More
Concern: Sexually Transmitted Bacterium Among Men Develops Antibiotic Resistance
Following Massive Investor Demand: SK Hynix Raises 26.5 Billion Dollars on Nasdaq
Passenger Partially Pulled Out of Ryanair Jet After Cabin Window Fails Mid-Flight
After Four Years, and Under a Heavy Veil of Secrecy: King Charles Meets His Grandchildren, Harry and Meghan's Children
Severe Heatwave Drives Dangerous Ground-Level Ozone Pollution Across Two Thirds of European Union
Westminster in Freefall as Farage's By-Election Gamble Triggers Broader Systemic Crises
Institutional Fractures and Political Volatility Reshape Britain's Domestic Landscape
Deadly Fire, Health Emergencies and Political Upheaval Shape a Volatile Global News Cycle
Flight Instructor Jumped to His Death — Student Landed the Plane: "You Know What You Need to Do"
The Physical and Electronic Barriers Disrupting Domestic Wireless Networks
France and Morocco Open World Cup Quarter-Finals as Collina Defends Refereeing
Prince Harry Suffers Major Court Defeat in Legal Battle Against Daily Mail Publisher
Bonnie Tyler, Welsh Singer Behind Total Eclipse of the Heart, Dies at 75
Tech Pulse: The Future of AI and Screen Culture
Global News Briefing: Escalating Geopolitical Tensions and Corporate Shakeups
Global News Brief: Escalating Conflicts, Public Health Crises, and World Cup Drama
Federal Financial Framework Shifts as Treasury Launches Universal Savings Program for Minors
French Court Allows Le Pen to Run for Presidency, but with an Electronic Tag: "I Will Appeal, and I Will Run"
$1.4 Trillion: The Lawsuit That Could Crush Meta
Europe's Growing Struggle with Extreme Heat and Air Conditioning
UK Daily Briefing: Legal Developments and Social Issues
Political Turmoil and Rising Costs
Anthropic Reengineers Agentic Architecture to Shift Autonomous Workplace Automation to the Cloud
Logic Flaw in Windows 11 Permission Architecture Silently Consumes Hundreds of Gigabytes of Local Storage
Apple Advances Late-Stage Operating Systems with Fourth Beta Deployments
Global Crisis Alert: Escalating Middle East Tensions and UK Political Upheaval
Deep Purple Has Released Its Best Album in Decades
Microsoft Lays Off 4,800 Employees and Xbox Suffers the Hardest Blow
Morocco and France Advance as 2026 FIFA World Cup Enters Quarterfinals.
Historic 2026 Tour de France Opens in Barcelona With Revamped Team Time Trial.
Global Mergers and Acquisitions Approach $4 Trillion Defying Geopolitical Tumult.
Negotiators Advance 20-Point Framework for Gaza Ceasefire and Demilitarization.
OECD Warns Middle East Conflict Will Depress Global Economic Growth.
Ukrainian Drones Strike Major Oil Terminal in St. Petersburg.
World Meteorological Organization Issues Urgent Alert Over Rapidly Intensifying El Niño.
United States Commemorates 250th Anniversary With Diplomatic Summits and Global Flotilla.
Iran Begins Days-Long Funeral for Supreme Leader Khamenei Amid Strait of Hormuz Standoff.
Technology giant reports surging carbon emissions driven by artificial intelligence infrastructure demands.
Artificial intelligence adoption accelerates workforce reductions across the technology and financial sectors.
Global technology and financial conglomerates collaborate to launch a new stablecoin standard.
United States regulators lift export restrictions on a major frontier artificial intelligence model.
Luxury bags take over the World Cup: style, status symbol, or just showing off?
×