Washington: Twitter's new CEO Elon Musk, has issued a bankruptcy warning. He further disclosed that the sudden resignation of top officials who were viewed as potential future leaders was the cause of the issue.

Only a few weeks after Musk paid $44 billion to acquire Twitter, the company is sliding into a serious financial crisis.

Musk reportedly informed his team that the debt crisis could not be avoided, according to Bloomberg News. About 50% of the workforce was let go after Musk took over Twitter.

Following that, other prominent officials quit as well, sparking a crisis. On Thursday, Twitter's chief security officer, Leah Kisner, along with senior executives Yoel Roth and Robin Wheeler, all announced their resignations.

Damian Kieran, the chief privacy officer, and Marianne Fogarty, the chief compliance officer, are both said to have resigned.

The retirement of privacy compliance officials alarmed the US Federal Trade Commission, which expressed "great concern" over it.

According to international media reports, Musk revealed that the company is in a severe financial crisis and will lose billions of dollars over the course of the upcoming year at the first meeting with all Twitter employees on Thursday.

Wheeler took care of all Twitter's advertising-related issues when Musk came over.

According to Roth, Twitter's head of security, there is now 95% less hazardous information in search results than there was before Musk's takeover.

Following his takeover of Twitter on October 27, Musk fired a large number of staff and claimed that advertisers had left the company as a result of his presence, resulting in a daily loss of more than $4 million.

Musk also disclosed that following the shutdown, customers will have to pay $8 per month to continue using Blue Tick. Musk also ceased working from home after that.

The employees were notified of this in a mailer that warned of impending hardship. Musk has also claimed that Twitter is in a financial crisis as a result of the decline in advertising revenue.