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According to the New York Times, Elon Musk is using more radical cost-cutting strategies at Twitter. According to reports, management is considering not paying severance payments to ex-employees.
Elon Musk is apparently pursuing a more profitable Twitter in his quest to reduce costs.
According to the New York Times Twitter has stopped paying rent at any of its offices including San Francisco headquarters. Musk instructed employees not to pay vendors. According to the Times, an upcoming New Hampshire lawsuit revealed that Twitter also refused to pay $200,000 for private plane flights in October.
Twitter cut 50% of its workforce of over 7,000 employees last month in an attempt to save money. It promised that fired US employees would receive three months’ pay, which included 60 days of salaried and one month of severance. According to The Times, Musk’s team is considering whether or not to pay the severance and risking lawsuits by disgruntled ex-workers.
Twitter recently posted office supplies up for auction as another cost-saving measure.
Insider requested comment but Twitter didn’t immediately respond.
According to the Times, Musk seems to be trying to save money while Twitter prepares for multiple legal battles. According to the Times, Twitter is under investigation by the Federal Trade Commission and could face a class-action lawsuit brought forward by former employees. In recent weeks, Musk has brought in lawyers from SpaceX to run Twitter’s legal department.
A significant interest bill is also facing the company: The company owes approximately $1 billion annually in payments to banks owing to Musk’s $44 billion loan to finance his purchase of Twitter.
Business Insider has the original article.
—————————————————————————————————————————————
By: sdelouya@insider.com (Samantha Delouya)
Title: Twitter has reportedly stopped paying rent on its offices and is considering not paying severance packages to laid-off workers
Sourced From: www.businessinsider.com/twitter-stopped-paying-rent-not-paying-severance-elon-musk-report-2022-12
Published Date: Wed, 14 Dec 2022 00:10:50 +0000
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