by Elon Musk Twitter There may be a new strategy to reduce costs: simply skip payments.
Twitter has not paid the rent for some of its offices, including its San Francisco headquarters, for several weeks as it tries to renegotiate leases, the company reports. New York Times. The newspaper also reports that the social media company is refusing to pay the bill for nearly $200,000 for private flights taken around the time of Musk’s takeover.
The missed payments are part of an overall effort to cut costs at the social media company. musk lay off about half of Twitter’s employees shortly after he became CEO. ex-employee complain in November that the social media company has not yet reimbursed them for expenses incurred while they were still employed by Twitter. Executives at Twitter are currently considering whether they can withhold severance payments to those laid off. New York Times report.
Musk also instructs employees $1 billion in spending cuts on Twitter’s IT infrastructure, such as additional servers the company uses to keep it running during times of high traffic.
Twitter’s new CEO has also asked employees to review the company’s dealings with suppliers and partners, including withholding payments as a tactic. New York Times report last month. That could extend to Twitter withholding rent payments: some landlords have offered to allow the company to terminate leases in exchange for reduced payments, but the social media company refused, according to axis.
The social media company, which rarely turned a profit even before Musk took over, is now operating under the management of Mr. significant financial stress. Many companies have paused their ad spend amid Twitter layoffs and more nifty content moderation approaches.
To make matters worse, Musk borrowed $13 billion to fund his Twitter deal, costing the social media company up to $1 billion in annual profits.
This social media company is trying to create new revenue streams, such as their paid verification service Twitter Blue. relaunch on Monday. The service was taken down last month after Twitter users Blue impersonated companies to make jokes and share misinformation.
Twitter also recently ordered some office supplies and furniture, such as espresso machines, television screen and a 6-foot tall @ symbol sculpture on the auction block. (The company that handled the auction for Twitter denied the sale had anything to do with the company’s financial position.)
Musk himself seems to have a debt in mind. On Tuesday night, Twitter CEO warning his social media followers to “beware of debt in turbulent macroeconomic conditions.”
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