In a bid to cut costs, Twitter has reportedly not paid up the rent for its global offices and its San Francisco headquarters. The company is also said to have held back severance pay from the recently-sacked employees, says a report by the New York Times. The social-media firm seems to be in dire straits as it has been constantly avoiding paying off debts to multiple organisations.
Even after laying off thousands of employees, the social-media giant is continuing to take drastic measures to cut costs. Elon Musk recently removed the council that advised on safety issues of the platform after changing the legal team and eliminating the communications department.
Musk’s legal team has been renegotiating the terms of the Company’s lease agreements. It is reported that Musk is considering not paying the severance package he owes to the thousands of employees laid off.
As per one lawsuit filed against the Company says it has refused to pay a sum of $1,94,725 for private charter flights.
Millions of dollars of travel invoices and other services remain unpaid as these were from the time before the takeover of Twitter by Musk. In fact, Musk recently said that travel services and contract vendors will not be reimbursed because they were not authorised by by him but by the former manager. Since then, the present employees have been turning a deaf ear to calls from these vendors, as per the NYT report.
With the talks around denial of severance pay heating up, company officials have reportedly cautioned employees against talking to the media.
During Musk’s acquisition, Twitter started observing losses in revenue as advertisers began pulling out their investments. Fortunately, Musk was able to convince Apple and Amazon to stay after reaching out to them.