Elon Musk warns Twitter can go bankrupt if employees don't 'be more hardcore'

Elon Musk, in his first official address to the company's employees, painted an extremely bleak scenario for the social media giant. Reportedly, Musk warned the employees that if the company fails to generate more cash, the possibility of bankruptcy is real. 

According to a report by Bloomberg, Elon Musk issued this warning within two weeks of taking over the micro-blogging platform. One of Musk's trusted executives at Twitter, Yoel Roth has also announced his departure from the company. There are various others who are quitting the ranks as rumours of bankruptcy swell. 

Yoel Roth was the former head of trust and safety at Twitter who has been the face of the platform in the last two weeks since Elon Musk's takeover. However, there are some conflicting reports suggesting that Wheeler might still get retained. Wheeler is the head of ad sales.

Roth has changed his official job status on Twitter. He's now the "Former Head of Trust & Safety at 
@Twitter." Twitter cybersecurity head Lea Kissner has also announced her departure from the company. 

Elon Musk purchased Twitter in a $44 billion deal. He took the company private but managed to complete the deal using a $13 billion loan from various banks.  

The latest report suggests that even before Musk made this claim of bankruptcy, some funds were offering to buy the massive loans at 60 cents on the dollar. This indicated that the company is already in financial distress. Musk has asked employees to stop working from home and has also removed perks such as 'rest days' from the company's HR policy. 

Musk has undertaken some significant cost-cutting measures since he joined the company which includes firing the top rung of Twitter executives. He fired the CEO Parag Agrawal, CFO Ned Segal, and Policy head Vijaya Gadde on the first day. However, the payouts to these employees could have resulted in a massive cash outflow for the company.