Drastic austerity measures: Report: Kasturi doesn’t want to pay rent and severance pay

huge savings
Report: Kasturi does not want to pay rent and severance pay

12/14/2022 8:59 am

The company hasn’t been quiet since Elon Musk took to Twitter in October. Now the new boss is causing a stir with questionable austerity measures. According to a report, Twitter’s office rent has not been paid for weeks.

In his quest to make Twitter a more profitable company, Elon Musk is apparently implementing extreme austerity measures. According to “The New York Times”Among other things, the social media conglomerate has stopped paying rent for its global offices for weeks. Even the rent for the headquarters in San Francisco is long past due. The paper relies on three informants who are said to be close to the company.

Musk also instructed his employees to stop payments to Twitter’s suppliers. According to The Times, citing a recently filed lawsuit in New Hampshire, Twitter refused to pay nearly $200,000 for the private flights it operated in late October, after the Musk-owned company accepted took.

Twitter risks lawsuits from former employees

To save money, Twitter last month laid off 50 percent of its more than 7,000 employees. Musk also announced that he would only hire people who were “extremely hardcore” and committed to extreme work hours. Anyone leaving the company should get severance pay of three months’ salary. According to the research of “New York Times”, it should still be on the verge. According to the report, there is a possibility that Musk’s team will consider not paying the severance package at all, risking lawsuits from disgruntled former employees.

Twitter is already preparing for several lawsuits. The company reportedly faces a Federal Trade Commission investigation and a possible class action lawsuit by former employees. Musk has restructured Twitter’s legal department in recent weeks and brought in lawyers from SpaceX, one of his other companies, to support the department.

The company also faces a huge interest bill: It has to pay banks about $1 billion a year since Musk borrowed money to fund its $44 billion purchase of Twitter.