Elon Musk said in the “All-In” podcast that Twitter isn’t on a path to bankruptcy, softening some of his dire warnings to employees last month after ruling over the platform.
“We’ve got the expenses reasonably under control, so the company’s not like, in the fast lane to bankruptcy anymore,” the social media company’s CEO said on an episode of the show posted on Saturday. He later clarified that Twitter “isn’t secure yet.”
“It is not at all uncommon for companies to go through a change in management during a bankruptcy, either in response to the requirements of a secured lender, or just to increase confidence in the process,” said Brook Gotberg, a law professor at Brigham Young University.
Musk has been in aggressive cost-cutting mode since his Twitter deal was finalized on Oct. 27. As its self-appointed chief, he’s overseen the layoffs of most of the 7,500 employees.
The tech giant also has some $13 billion in debt from banks like Morgan Stanley, which are expecting trouble offloading it, Reuters reported this month.