The billionaire has stated publicly that Twitter was in danger of going bankrupt and that the company lost money when advertisers left the platform due to, his takeover.
Micro-blogging site Twitter CEO Elon Musk has offered stock grants to his employees at a valuation of close to $20 billion (approximately Rs. 1,64,600 crore reported on Saturday, according to a person familiar with an email Musk wrote to the Twitter workforce.
The reported valuation indicates a decline in Twitter’s value as it is less than half of the $44 billion (approximately Rs. 3,62,100 crore) that Musk paid to purchase the social media site.
The email was sent to staff members to inform them of a new stock compensation programme, and it was viewed by The New York Times. In it, Musk warned staff that Twitter’s financial situation was still shaky and that the company was once just four months away from going bankrupt. He claimed that the business needed to undergo “radical changes,” such as cost-cutting and mass layoffs, in order to stay afloat and run more efficiently.
The micro blogging site is transforming quickly, Musk remarked, adding that it may be compared to “an inverse start-up.”
The value of Twitter has decreased as a result of Musk’s radical changes. Since Musk took Twitter private in October, it is no longer required to be transparent about its financial operations. Yet, the billionaire has stated publicly that Twitter was in danger of going bankrupt and that the company lost money when advertisers left the platform as a result of his takeover.
Following meetings in Brussels between Musk, the company executives, and regulators, the European Union reportedly instructed Musk to hire more human moderators and fact-checkers to examine tweets earlier this month.
The requirement makes it more difficult for Musk to restructure the loss-making company he bought in October for $44 billion (approximately Rs. 3,62,100 crore). In an effort to find less expensive ways to monitor tweets, he has cut more than half of Twitter’s 7,500 employees, including the whole trust and safety teams in some places, according to the story.
The significant reduction in staff has prompted questions about Twitter’s ability to abide by the EU’s Digital Services Act, which mandates that Internet companies have specific safeguards in place against illegal content before the law takes effect in its entirety in early 2024.
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