- Elon Musk is more and more utilizing radical cost-cutting measures at Twitter, in line with the New York Times.
- Twitter is reportedly now not paying hire on its workplace buildings, and Musk has instructed employees to not pay distributors.
- Management is reportedly weighing the potential for not paying severance to former workers.
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In Elon Musk’s quest to make Twitter a extra worthwhile firm, he’s reportedly implementing more and more excessive cost-cutting measures.
According to the New York Times, Twitter has stopped paying hire for any of its places of work, together with its San Francisco headquarters, and Musk has instructed workers to now not pay Twitter’s distributors. The Times, citing a latest New Hampshire lawsuit, discovered that Twitter has additionally refused to pay practically $200,000 in personal aircraft flights taken in late October.
Last month, in an effort to save cash, Twitter laid off 50% of its greater than 7,000-person workforce, promising that fired US-based workers would get 3 months’ pay, together with 60 days of salaried pay, and one month of severance. The Times experiences that Musk’s workforce is now weighing the potential for not paying the severance in any respect, and risking lawsuits from disgruntled former employees.
Twitter has additionally just lately listed workplace provides for public sale in one other cost-cutting try.
Twitter didn’t instantly reply to a request for remark from Insider.
Musk seems to be attempting to save cash as Twitter gears up for a number of authorized battles, in line with the Times. Twitter is reportedly going through an investigation from the Federal Trade Commission, and a possible class-action lawsuit from former workers. Musk has shaken up Twitter’s authorized division in latest weeks and has reportedly introduced in attorneys from one in all his different corporations, SpaceX, to assist run it.
The firm additionally faces a hefty curiosity invoice: owing roughly $1 billion in annual funds to banks because of the cash Musk borrowed to assist finance his $44 billion buy of Twitter.