Twitter skipping rent on San Francisco HQ, selling office equipment as Musk cuts costs: reports

Twitter retains making cost-cutting strikes, based on studies.
REUTERS

Twitter has been skipping hire funds on its San Francisco headquarters and placing up workplace provides for public sale underneath new CEO Elon Musk because the social media firm seems to be to strengthen its monetary place, studies mentioned.

Twitter hasn’t paid hire on its San Francisco location or any of its international workplaces for weeks, three folks near the corporate informed the New York Occasions.

Musk and his advisers are hoping to renegotiate the phrases of lease agreements resulting from their smaller workforce after mass layoffs, the paper mentioned.

The transfer was simply one of many cost-cutting measures by Musk after he paid $44 billion for the social media firm in October.

In early November, Musk admitted Twitter had seen a “large drop” in income.

The corporate can also be refusing to pony up an almost $200,000 invoice for personal constitution flights made the week that Musk took over, the Occasions reported, based on a replica of a lawsuit filed in New Hampshire.

Musk and his advisers need to renegotiate their hire obligation.

AP

Musk’s staff can also be contemplating what may occur if the corporate didn’t observe via on paying severance to the 1000's of individuals laid off from Twitter since Musk got here aboard, sources informed the Occasions.

About 7,500 staffers labored on the website earlier than Musk began slashing about half its workforce.

Initially, Musk determined the corporate would dole out no less than two months of pay and one other month of severance pay to US-based staff consistent with federal and state labor legal guidelines, however now Musk’s staff is discussing whether or not it ought to pay a few of these months, the Occasions reported, citing two sources.

Many former workers are nonetheless ready for paperwork that formalizes their departure from Twitter, 5 folks informed the Occasions.

Twitter can also be reportedly placing industrial-grade kitchen tools, workplace provides and electronics from its San Francisco workplace up on the market.

Musk and advisers are contemplating what severance pay they offer ex-staffers, the Occasions reported.

REUTERS

Among the objects listed embody a 41-inch-high Twitter chicken statue, a sculpture planter, chairs, projectors, televisions, desks and espresso machines, based on the itemizing from Heritage International Companions.

The San Diego-based firm, which is dealing with the public sale, positioned the main points of the sell-off over the weekend with bids that may begin being accepted in January, the San Francisco Chronicle reported.

A rep for Heritage International Companions informed Fortune that the public sale had nothing to do with Twitter’s monetary well being.

“They’ve bought for 44 billion, and we’re promoting a few chairs and desks and computer systems. So if anybody genuinely thinks that the income from promoting a pair computer systems and chairs pays for the mountain there, then they’re a moron,” Nick Dove of HGP informed the outlet.