According to The New York Times, while Twitter vendors are waiting to receive their payments from the company, Elon Musk has issued new orders to stop paying vendors and contract services. This includes hundreds of thousands of dollars for employees’ travel bills before Musk could take over the company.
After Musk’s takeover, Twitter has undergone a series of changes, and the company has even laid off thousands of its employees. Musk’s cost-cutting campaign is now affecting Twitter suppliers as they haven’t paid on time. The vendors reportedly demand millions of dollars from the social media platform.
The NYT reports Musk is making fundamental changes to Twitter’s leadership by bringing allies from Tesla, his family office, and the Boring Company. Additionally, the company’s finance staff are ordered to review company expenses and employee expense reports “line by line” to ensure that those expenses are for “real people and real expenses.”
Prior to this, Twitter terminated its ties with thousands of its contract workers, most of whom have been working on content moderation. Musk has already told remaining employees that “the economic picture ahead is dire” and bankruptcy still threatens the company.
Elon Musk refuses to pay for Twitter employee’s travel bills
For now, the computing costs, travel expenses, software services, real estate, and in-office cafeteria food expenses have come under review. Payments to some vendors are now halted, and Musk has even asked the company’s executives to negotiate the expenses with outside suppliers. Corporate credit cards are shut down, and Musk even ordered them to cut back on free lunches. The payments to charitable organizations are also delayed.
Twitter’s cost-cutting campaign is even affecting the company’s deal with NFL and NBA, as the social media app is now paying them for exclusive audio and video content. Additionally, Twitter’s deals with Condé Nast, Fox Sports Network, Amazon, and Oracle must be renegotiated.
2022-11-24 15:06:40