-
Elon Musk is more and more utilizing radical cost-cutting measures at Twitter, in line with the New York Instances.
-
Twitter is reportedly not paying hire on its workplace buildings, and Musk has advised employees to not pay distributors.
-
Administration is reportedly weighing the opportunity of not paying severance to former workers.
In Elon Musk’s quest to make Twitter a extra worthwhile firm, he’s reportedly implementing more and more excessive cost-cutting measures.
Based on the New York Instances, Twitter has stopped paying hire for any of its workplaces, together with its San Francisco headquarters, and Musk has instructed workers to not pay Twitter’s distributors. The Instances, citing a latest New Hampshire lawsuit, discovered that Twitter has additionally refused to pay almost $200,000 in personal aircraft flights taken in late October.
Final 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 Instances reviews that Musk’s workforce is now weighing the opportunity of not paying the severance in any respect, and risking lawsuits from disgruntled former employees.
Twitter has additionally 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 making an attempt to save cash as Twitter gears up for a number of authorized battles, in line with the Instances. Twitter is reportedly dealing with an investigation from the Federal Commerce Fee, 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 legal professionals from one in all his different corporations, SpaceX, to assist run it.
The corporate 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.
Learn the unique article on Enterprise Insider