Twitter would have stopped paying one of its rents in San Francisco, the group sued

Would Twitter Cut Costs Until It Forgot to Pay Rent? The social network newly acquired by Elon Musk is the subject of a complaint from the owner of his building located at 650 California St in San Francisco, report several local media including the wall street journal.

$136,260 in unpaid rent

The American group is accused by the owner of a building in San Francisco, Columbia Reit, of having repeatedly missed the payment of the rent. According to the complaint, $136,260 would be missing. The lawsuit, which was filed in California Superior Court, alleges breach of contract with the lessor. The premises have housed part of Twitter’s services for several years. The building manager had ordered the group to pay off its debts for a space on the 30th floor of the building by December 21. The social network therefore did not respect this injunction.

The offending office has been rented since 2017 by Twitter and several other companies. According to New York Times, the group has reportedly not paid rent for its global offices for several weeks. contacted by wall street journalthe platform did not comment on the file.

Aggressive cost reduction

Since his acquisition of Twitter for $44 billion in October 2022, Elon Musk has implemented an aggressive cost-cutting policy. More than half of the company’s employees would have been dismissed and the contracts with the majority of the subcontractors would have been broken. A global economy policy that has resulted in recent weeks in the renegotiation of several contracts. In some cases, the group would refuse to pay its bills, according to several sources close to Twitter cited by the New York Times in November.

Thus, expense reports related to travel by employees of the firm would have remained unpaid. Several suppliers also denounce the non-payment of the sums required under previous contracts. Our colleagues then evoked millions of dollars in arrears in certain cases. Since his arrival, Musk would track the smallest expenses of his new firm and seek to compress costs as much as possible. Witness the central cafeteria of Twitter, which has not been spared, with a drastic reduction in the choice on the menus, according to the employees.

For several months, Elon Musk has been repeating that Twitter’s financial situation was catastrophic before its takeover. The accounts could go back into the green in 2023, assures the businessman.

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