The risk measurement agency Moody’s announced that it stops rating Twitter

The risk measurement agency Moody’s announced that it stops rating Twitter (REUTERS) (CARLOS BARRIA /)

In the midst of the stormy weeks that Twitter lives since the acquisition of Elon Muskthis Saturday the risk measurement agency Moody’s announced the withdrawal of ratings about the social network.

The measure, as reported, is due to the lack of information about the company, which makes it difficult to obtain details about his financial situation.

“Moody’s has decided to withdraw the ratings because it believes it has insufficient or inadequate information to support maintaining the ratings,” reads in the letter that the company published on its website.

On October 31, the agency had already reduced the credit rating two notches, placing it at level B1, and had anticipated that Musk’s announcements expected a substantial increase in leverage and the weakening of other metrics.

Twitter‘s governance risk is very negative, reflecting Moody’s expectations of aggressive financial policies and Elon Musk’s concentrated ownership,” Moody’s announced after the purchase of the social network.

At the end of October Moody's had already reduced the credit rating two notches, placing it at level B1 (REUTERS)
At the end of October Moody’s had already reduced the credit rating two notches, placing it at level B1 (REUTERS) (BRENDAN MCDERMID /)

Currently, there are more doubts about Twitter than the certainties that are held about it. With the landing of Musk in the offices of the little blue bird, there have been a series of abrupt changes What layoffsincrease in debt Y plummeting advertising revenueso no one knows how the company’s accounts are.

It should be remembered, in turn, that the company was already in the red prior to the change in the management team, and now the losses they have only accelerated to four million dollars a day.

To deal with this situation and reverse the downward trend that Twitter has, Musk decided dismiss to a large part of its employees, in order to cut costs. Although they did not specify how many people lost their jobs in recent times, it is estimated that they were close to 3,700 -representing more than half of its global workforce-. “There is no other choice when the company is losing about four million a day,” the businessman wrote in his profile.

Elon Musk justified layoffs on Twitter
Elon Musk justified the layoffs on Twitter

The controversy arose, in addition, due to the way in which the decision was communicated since, according to what the employees showed, they received the news by means of an email or, even, found out after not being able to enter their systems.

Also, those who had expressed some kind of questioning to the social network about the guidelines adopted in recent weeks, saw their contract with the company terminated.

for his partthe employees selected to continue The staff also received an email from Musk with an ultimatum in which he urged them to commit to work hard or, conversely, to leave the company.

The measure provoked, this week, a wave of resignations in opposition to the company’s request to complete a form in which they promised to “work many hours at high intensity”.

However, Musk has been very careful with this play as he made sure to retain the programmers and engineerskey to the functioning of the social network and to carry out all the ideas and changes that it studies.

Elon Musk with programmers and engineers, whom he summoned to the San Francisco offices (Twitter: @elonmusk)
Elon Musk with programmers and engineers, whom he summoned to the San Francisco offices (Twitter: @elonmusk)

Again, through an email, the businessman summoned this Friday and Saturday all the personnel who developed software codes to appear on the tenth floor of the company’s office in San Francisco, in order to talk about their performance. .

“There will be brief technical interviews that will allow me to better understand the technological operation of Twitter,” Musk explained in the email.

He also asked them to respond to the email with a summary of what your software code has “achieved” in the last six months, “together with up to 10 screenshots of the most prominent lines of code”.

(With information from EFE and Reuters)

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Source-www.infobae.com