The remaining Twitter employees have been informed by new owner Elon Musk that they must make a decision by Thursday afternoon regarding their employment status.
Musk stated that Twitter would “need to be extremely hardcore” to succeed in an email addressed to staff with the subject line “A Fork in the Road.” Those who decide to stay can anticipate a lot of hard work and long hours. He wrote that those who leave will get three months’ worth of severance pay.
Musk stated in the ultimatum that he values engineers above designers, project managers, and other employees in what he hopes will be “a software and servers company.”
The argumentative post is the most recent indication of rising tensions within Twitter, a business that has been wracked by chaos and confusion since the billionaire’s $44 billion acquisition in October.
Top executives were immediately let go by Musk. Since then, he has fired some employees after they publicly criticised him and laid off about 3,700 employees, or about half of the workforce. Key members of the content moderation, cybersecurity, and legal compliance divisions have resigned.
It has long been a challenge for Twitter to increase its profitability, according to Musk, who claims that his reorganisation is a part of that effort. Additionally, he claims that the business needs to stray away from advertising and get the majority of its funding from alternative sources, such as Twitter Blue, a paused service that Musk redesigned and debuted to much controversy.
The company’s financial outlook is one problem that looms large now that it has recently accumulated debt.
Elon Musk claims that Twitter could go bankrupt, but is that likely?
In a deal that was widely regarded as being overpriced, Musk borrowed $13 billion to purchase Twitter.
Ad sales, which account for almost all of its revenue, have decreased as a result of advertisers waiting to see how the economy as a whole and Musk’s leadership of Twitter develop.
The ability of Twitter to make the estimated $1 billion debt service payment on the debt Musk obtained to complete his takeover has been called into question.
Even a potential bankruptcy has been mentioned by Musk, which would allow Twitter to restructure its debt, but it is unclear how serious Musk took that threat.