Several property owners, consultancies, and suppliers have filed lawsuits against Twitter, alleging their invoices have not been settled.
Twitter Facing Hard Times
It arises as the networking site company works to reduce expenses and reach a break-even point, following Elon Musk’s $44 billion acquisition.
However, according to nine cases that the Wall Street Journal has access to, the allegations to date amount to an excess of $14 million.
Among them is a $7,000 charge for a swag goodie bag for Elon that Twitter’s marketing division issued just before the $44 billion acquisition completed on October 27; the supplier who produced the package is still waiting for compensation.
According to the business’s court documents, the goodie bag included more than $250 worth of socks, an additional bomber jacket, an etched emblem on a Japanese whisky bottle, as well as other goods.
Since he bought Twitter, Musk has fought over almost every dollar, despite the fact many other payments were still outstanding after he took control in October.
He instantly took a more thrifty approach regarding expenditures at the business, even selling off ‘woke’ office equipment, like a huge Twitter bird sculpture and other $1,000 goods beginning at $25.
This happened as soon as he walked into the San Francisco premises.
At least nine lawsuits claiming more than $14 million plus interest over unpaid bills have been filed against Twitter, The Wall Street Journal reported on Feb. 20, 2023#ElonTanksTwitter #PayYourBillsDeadbeatElon #NotAGenius https://t.co/6ogl24ZUwv
— Amber (@TheMadSoaper99) February 21, 2023
Among the pricey luxuries featured in the shipment from the San Francisco headquarters were an espresso maker worth $20,000, a vegetable dryer worth $10,000, and a braising pan worth $17,000. Together with seats, tables, and kegs, there was also a plant pot in the shape of a “@.”
It was revealed in December that Elon was planning to close one of Twitter’s New York headquarters and is not paying the rent for the company’s Seattle office.
When the San Francisco office was reduced from four stories to two, opulent perks are supposedly no longer offered in favor of stench-filled workspaces that reportedly aren’t kept clean. That’s a result of firing cleaning staff who went on a strike for higher pay.
Based on reports from past and present employees, it left the office smelling like stale takeaway and poor hygiene.
Previously, Musk has managed businesses that were on the verge of bankruptcy, notably Tesla, which came dangerously close to going bankrupt.
Twitter owes $14 million to landlords, vendors and outside contractors, according to a slew of recent lawsuits.
Since CEO Elon Musk purchased Twitter last October for $44 billion, he’s been searching for ways to cut costs.https://t.co/bb3iX03bhW
— New York Daily News (@NYDailyNews) February 22, 2023
When it comes to addressing the firm’s hard times, Musk seems to be quite hands-on, placing pressure on suppliers and partners to cut costs.
Van Conway, a reorganization specialist who has worked with troubled businesses for almost 40 years, claims what Elon Musk is doing is effectively imitating bankruptcy. He is using a machete to cut expenditures.
Musk has made a lot of substantial improvements at Twitter, which has a tradition of making losses, since assuming control in October.
Elon Cuts Costs
Musk reduced employees and expenditures in reaction to a decline in advertiser spending and debt-related deal charges.
He made a point of criticizing the company’s expenditures, which included $13 million spent annually on employee dinners.This article appeared in The Patriot Brief and has been published here with permission.