Former President Donald Trump’s Truth Social executed layoffs that impacted roughly six employees while the company waits for regulatory approval for a merger that comes with a financial lifeline.
Truth Social Layoffs
Since he was barred from social media platforms like Twitter and suspended from Meta Platform’s Facebook and Instagram during the Capitol uprising on January 6, 2021, former president Donald Trump has turned to Truth Social, a network that was just founded.
Truth Social’s staff has apparently been reduced by Trump Media & Technology Group after one year since the company’s start. Six people, including senior members of the company like Chief Technical Officer William B.J. Lawson, were laid off, according to a report by Bloomberg.
The corporation has now replaced its CTO three times. Given that this information was shared internally by the business, neither Lawson nor Trump Media issued a statement on the subject.
Trump Media is cutting back on staff as it waits for regulators to decide whether to approve the company’s merger with blank-check company Digital World Acquisition Corporation.
In a letter to Congress in February, the company’s general counsel requested an investigation into the US Securities and Exchange Commission’s examination of the deal. “The never-ending examination of the DWAC-TMTG merger obviously indicates an unprecedented attempt to scuttle the deal without any finding of wrongdoing,” the letter stated.
Company Revenue
Once upon a time, the company’s leaders were upbeat about the company’s advertising revenue and its ability to expand in the market, particularly during the US midterm elections. However this hope led to disappointment when the company suffered difficulties and challenges.
According to The Verge, Truth Social has a number of technical and legal issues that could endanger the social media site. The platform’s stalled SPAC, which was intended to allow the public to trade company shares without an IPO, has been postponed. As a result, Digital World Acquisition Corporation finds itself in a challenging situation.
Truth Social incurred losses of nearly $6 million in the first half of 2022, according to the United States Securities and Exchange Commission, and it has not produced any income. The trust that owns the majority of the company’s assets only has $293 million in it.
Due to these issues, Truth Social has stopped making several of its financial obligations, notably RightForge, a conservative provider of internet infrastructure. According to Axios, the corporation owes them back payments totaling at least $1.6 million.
Martin Avila, the chief executive officer of Rightforge, said the company is dedicated to supporting the application. Yet due to the current situation, the company could lose its hosting services.
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