According to a story, Elon Musk, the CEO of Twitter, has reportedly told his staff not to pay any vendors, including the rent for the company’s headquarters, in anticipation of possible legal action against the social media behemoth. The New York Times revealed that Twitter, which has cut off nearly half of its workers, has not been paying rent for its San Francisco headquarters and international operations for weeks.
According to the article, Twitter has also talked about the repercussions of not paying severance costs to the staff members who were let go during its most recent round of mass layoffs. The firm is also trying to renegotiate the terms of its leasing agreements.
A $197,725 charge for private charter aircraft incurred in late October, just before Elon Musk took over the business, was also reportedly unpaid by Twitter.
This occurs while the business works to save costs. A statue of Twitter’s iconic blue bird, office furniture, espresso equipment, and an electric bike charging station are among the goods being auctioned off by Twitter, according to a previous source.
Since Elon Musk’s high-profile acquisition, Twitter’s headcount has decreased by more than half, from over 7,000 to just over 2,000, as a result of thousands of resignations or terminations. Although the business previously decided it would provide laid-off workers with at least two months of compensation and one month of severance pay, it is now considering forgoing severance packages.
Following the huge layoffs, Elon Musk asserted that the company was losing millions of dollars per day, making the firings inevitable.
“Regarding Twitter’s reduction in force, unfortunately, there is no choice when the company is losing over $4M/day. Everyone exited was offered 3 months of severance, which is 50% more than legally required,” he had tweeted.