Musk's Twitter hasn't paid rent since takeover — and threatens to end severance for laid-off workers
In this photo illustration, the image of Elon Musk is displayed on a computer screen and the logo of Twitter on a mobile phone. (Muhammed Selim Korkutata / Anadolu Agency via Getty Images)
Twitter has begun to auction off furniture and kitchen equipment from its office
Billionaire Elon Musk is making more cost-cutting moves at Twitter and may not pay severance packages to the thousands of workers he fired earlier this year, according to a report from The New York Times.
Since acquiring the social media company for $44 billion in October, Musk has restructured Twitter's legal department and disbanded a council that advises the site on safety issues in an effort to cut costs. Seven people privy to internal conversations at the company told the Times that Musk is preparing for potential litigation and, in anticipation, has instructed employees to withhold payments to vendors.
Twitter has not paid rent for its San Francisco headquarters, or any of its offices around the world for weeks, three of the sources told the outlet. Under Musk's leadership, the company has also refused to pay a $197,725 bill for private charter flights made the week of the takeover, according to a copy of a lawsuit filed in New Hampshire District Court that was obtained by the Times.
Executives at Twitter have also proposed the idea of denying severance payments to the workers that were laid off during the takeover, two people said. Musk has also threatened to sue employees if they talk to the media or behave "in a manner contrary to the company's interest," according to an internal email sent last Friday.
Musk's role at Twitter has launched the company into chaos, with thousands of resignations and layoffs, and significant changes to the platform's community guidelines that repelled many advertisers from the site.
