Musk's Twitter ownership is further destabilised as key executives resign

Elon Musk’s Twitter ownership descended further into chaos on Thursday, as key security executives resigned, drawing a harsh warning from US regulators.

The walkouts occurred just one day after Tesla and SpaceX owner Musk’s $44 billion purchase of the influential messaging app.

Musk warned employees on Thursday that the site was burning through cash at an alarming rate, raising the prospect of bankruptcy if the situation was not corrected.

“I’ve made the hard decision to leave Twitter,” said chief security officer Lea Kissner, who reportedly left along with other key privacy and security executives.

In the most unusual departure, Yoel Roth, the site’s head of trust and safety, resigned just a day after vehemently defending Musk’s content moderation policy to advertisers.

The convulsions occurred after the site’s long-awaited Twitter Blue subscription service was unveiled, which allows users to pay $7.99 per month for a coveted blue tick, as well as a separate grey “official” badge for some high-profile accounts.

However, the release devolved into chaos on Wednesday when Musk scrapped the new grey label almost immediately, overshadowing the launch of the payment service, which is currently only available on iPhones and in the United States.

Following the launch, there was a flood of fake accounts created by users attempting to impersonate celebrities and politicians such as NBA star LeBron James and former British Prime Minister Tony Blair.

Early media reports also stated that Robin Wheeler, who played a key role in connecting Twitter with advertisers and was regarded as a key Musk ally within the company, was leaving, but she later tweeted, “I’m still here.”

The chaos drew a rare warning from the Federal Trade Commission, the US consumer safety agency that had previously placed Twitter on the watch for past security and privacy breaches.

“We are tracking recent developments at Twitter with deep concern,” a spokesperson for the FTC said in a statement.

The spokesperson went on to mention Twitter’s previous pledges to follow US privacy laws, “no CEO or company is above the law, and companies must follow our consent decrees.”

Violations of FTC decisions could result in millions of dollars in fines for Twitter.

The 51-year-old entrepreneur fired half of the company’s 7,500 employees a week ago, just 10 days after purchasing the site and becoming its sole owner.

According to employee text messages obtained by AFP, Musk addressed his remaining employees for the first time since the layoffs on Thursday and urged them to help the site reach one billion users.

Musk also warned that the company was losing money and expressed concern about the effects of the bad economy on his newly acquired company.

“You may have noticed I sold a bunch of Tesla stock. The reason I did that is to save Twitter,” he is reported to have said.

Meanwhile, Wedbush analyst Dan Ives warned that the Twitter incident could have serious consequences for Tesla.

“Brand destruction is our biggest worry with this Twitter circus show. It’s that simple and I can’t ignore it for Tesla stock,” Ives wrote on the site.

Twitter has also been hampered by advertisers’ decision to avoid the platform due to Musk’s plans.

The tycoon announced that he was discontinuing Twitter’s work-from-home policies, which had been widespread at the San Francisco-based company.

“If you don’t show up at the office, resignation accepted,” he told employees.