The mercurial tech billionaire has said he won’t rule out Twitter filing for bankruptcy in the next year unless it generates more cash and cuts spending.
Elon Musk has raised the specter of bankruptcy at Twitter a fortnight after completing the controversial takeover of the microblogging platform and firing top executives including the CEO.
According to Yahoo Finance, the mercurial tech billionaire has said he won’t rule out Twitter filing for bankruptcy in the next year. He was speaking to employees in an emergency all-hands meeting on Thursday.
Musk made the offhand comment when he was talking about the company’s cash flow and fielding questions from the employees. He said Twitter may end up with ‘net negative cash flow of several billion dollars’ next year. He added that bankruptcy is ‘not out of the question’ unless the social media giant brings in more cash than it spends.
Separately, Musk tightened his stance on work from home, saying that unless employees are prepared to spend 40 hours a week at the office, they would rather have to consider quitting. Musk last week might as well file their resignation letters.
Musk has already laid off some 3,700 Twitter employees, who constitute half of its workforce.
