Elon Musk is increasingly using radical cost-cutting measures at Twitter, according to the New York Times.
Twitter is reportedly no longer paying rent on its office buildings, and Musk has told workers not to pay vendors. In Elon Musk's quest to make Twitter a more profitable company, he is reportedly implementing increasingly extreme cost-cutting measures. to the New York Times, Twitter has stopped paying rent for any of its offices, including its San Francisco headquarters, and Musk has instructed employees to no longer pay Twitter's vendors.
Last month, in an effort to save money, Twitter laid off 50% of its more than 7,000-person workforce, promising that fired US-based employees would get 3 months' pay, including 60 days of salaried pay, and one month of severance. The Times reports that Musk's team is now weighing the possibility of not paying the severance at all, and risking lawsuits from disgruntled former workers. Twitter did not immediately respond to a request for comment from Insider.
Musk appears to be trying to save money as Twitter gears up for multiple legal battles, according to the Times. Twitter is reportedly facing an investigation from the Federal Trade Commission, and a potentialfrom former employees. Musk has shaken up Twitter's legal department in recent weeks and has reportedly brought in lawyers from one of his other companies, SpaceX, to help run it.
The company also faces a hefty interest bill: owing roughly $1 billion in annual payments to banks due to the money Musk borrowed to help finance his $44 billion purchase of Twitter.
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BISouthAfrica Is it extreme measures to offload deadweight employees?