Elon Musk warns Twitter Employees, telling them to get ready for 80-hour work weeks, the elimination of free lunches, and tough guidelines against working from home.
According to those familiar with the situation, Elon Musk warned that bankruptcy would be an option for Twitter if it doesn’t start producing more cash in his first speech to staff members after buying the firm for $44 billion.
The warning occurred amid a turbulent beginning to Musk’s leadership at the social media business, which spanned a two-week period during which he dismissed half of Twitter’s personnel, ousted the majority of the senior executives, and ordered the remaining staff to stop working from home.
Yoel Roth, an executive who up until Thursday had emerged as a member of Musk’s new leadership team, left, according to sources with knowledge of the matter. Another person, Robin Wheeler, resigned as well, but Musk persuaded her to stay, according to some of the persons who asked to remain anonymous to safeguard their personal and professional lives.
While the acquisition has shielded Twitter from public market scrutiny, Musk also saddled the firm with over $13 billion in debt, which is presently held by seven Wall Street banks but has been unable to be sold to investors.
According to Bloomberg News on Thursday, investor confidence in the company has plummeted so quickly that some funds were offering to buy the loans for as little as 60 cents on the dollar, a price typically reserved for businesses considered to be in financial distress, even before Musk’s bankruptcy comments.
Musk repeated several sombre cautions in his speech to the workers. Expect 80-hour work weeks, employees. There won’t be as many workplace benefits, including free lunch. He also put an end to the flexibility that permitted workers to work from home during the pandemic.
As Twitter pursues the goal of elevating citizen journalism, media elite will try everything to stop that from happening
— Elon Musk (@elonmusk) November 11, 2022
According to a person acquainted with the situation, he added, “If you don’t want to come, resignation is accepted.”
Regarding the possibility of attrition, Musk responded, “We all need to be more hardcore.”
Musk stated that given the pushback from advertisers who are worried about bad content, Twitter must act quickly to make its $8 subscription package, Twitter Blue, something people will want to pay for. Musk was speaking about Twitter’s finances and future.
A person acquainted with Musk’s managerial style claims that in the past, Musk has attempted to encourage staff by threatening financial disaster. According to this guy, he is trying to make the point that if people don’t put in a lot of effort, Twitter will be in a very precarious position.
Elon Musk Ends WFH, Warns Of 80-Hour Work Week For Twitter Employees https://t.co/Cl62B0FnEc
— Business News (@ZAQSBusiness) November 11, 2022
Musk’s bankruptcy declaration was previously reported by The Information and Platformer.
Additionally, he made suggestions for goods he’d like to launch, such as interest-bearing checking accounts, conversational marketing, and payments. According to him, the Twitter app’s onboarding process ought to be easier than it is for TikTok.
The departures of Twitter’s top privacy officer, chief information security officer, and chief compliance officer earlier on Thursday raised questions about the company’s capacity to maintain platform security and conform to legal requirements. A consent order between Twitter and the Federal Trade Commission now governs how the business manages user data, and infractions might result in penalties.
While Wheeler, a sales vice president, had assumed responsibility for managing relationships with uneasy advertisers, Roth had since taken over all of the social network’s Trust and Safety initiatives. She made a clue about her choice to remain in a tweet and a message on an internal Slack channel.
According to one estimate, Twitter’s interest expenses as a result of the debt it took on to finance Musk’s takeover will reach $1.2 billion annually. Some advertisers have pulled back from the social network because they are worried about Musk’s intentions for content policing.
Usage of Twitter continues to rise. One thing is for sure: it isn’t boring!
— Elon Musk (@elonmusk) November 10, 2022
Additionally lacking in confidence are debt investors and credit rating agencies. The company’s banks have been subtly approaching asset managers and hedge funds to inquire about their interest in purchasing a portion of the company’s debt.
According to those with knowledge of the talks, the focus of the discussions thus far has been the $6.5 billion leveraged loan component of the financing. One of the people said that the banks had appeared unwilling to sell for any amount less than 70 cents on the dollar. Losses might reach billions of dollars even at that level, according to projections by Bloomberg.
Meanwhile, Moody’s Investors Service just lowered Twitter’s credit rating even further into the junk category. Twitter’s governance risk is extremely bad, according to Moody’s, which reflects the company’s anticipated aggressive financial policies and Elon Musk’s concentrated ownership.
"The fallout has often been excruciating, according to 36 current and former Twitter employees .. One engineering manager, upon being told to cut hundreds of workers, vomited into a trash can."https://t.co/JbMSrimCV0
— Carl Quintanilla (@carlquintanilla) November 11, 2022
Musk cautioned employees of “tough times ahead” in an email sent late on Wednesday, adding that there was “no way to sugarcoat the news” regarding the company’s economic future. He prohibited remote work for his staff members unless he approved it.
Elon Musk has sent a warning to Twitter staff, telling them to get ready for 80-hour work weeks, the elimination of free lunches, and tough guidelines against working from home. Keep checking Leedaily.com for the most recent updates, and feel free to leave comments in the space below.