The cost-cutting tactics taken by tech tycoon Elon Musk after he paid $44 billion to acquire Twitter have gone beyond mass layoffs, according to sources, and have even extended to not paying old invoices that are “worth millions of dollars.”
A brief about Elon Musk refuses to pay invoices at Twitter totaling “millions of dollars”:
According to a story in the New York Times, Elon Musk is refusing to pay back travel vendors for charges totaling “millions of dollars” that were made prior to his dramatic takeover of the microblogging site.
The Tesla CEO is currently refusing to pay travel vendors for those bills, employees, both past and present, according to the claim. Elon Musk allegedly did not “authorize” hundreds of thousands of dollars in travel invoices that former executives of the firm had incurred.
Additionally, according to the NYT report, Twitter employees have stopped answering calls from travel agencies.
It is well known that Elon Musk’s cost-cutting blitz has so far involved sacking about half of the company’s global personnel and performing a thorough analysis of all other costs. According to the NYT article, corporate credit cards belonging to Twitter employees have also been disabled.
The expenses that sustain Twitter’s core infrastructure, real estate, and even the company’s typically opulent in-office cafeteria cuisine are all subject to Elon Musk’s fury, the report added.
Twitter’s spending has decreased as a result of these harsh cuts, but the decisions have angered some employees, particularly some vendors who are due millions of dollars in past payments.
Just two weeks after purchasing Twitter for $44 billion, Elon Musk stated he could not rule out the idea of it going bankrupt during his first mass call with employees earlier this month.
Musk warned that Twitter would not be able to “survive the upcoming economic crisis” if it failed to increase subscription revenue to balance out declining advertising revenues that same day his first company-wide email, according to Reuters.
The modifications made to Twitter under Musk, such as content restriction, delisting of the company’s shares, layoffs, and verification subscriptions, all indicate a desperate attempt by the world’s richest man to offset Twitter’s “huge” income decline. Musk’s losses for 2022 exceeded $100 billion.