Twitter is reportedly failing to pay some suppliers amidst cost-cutting measures

Elon Musk is refusing to pay lots of of hundreds of {dollars} in journey payments accrued by Twitter staff earlier than he took over the corporate, The New York Times has reported. The corporate is on a drastic cost-cutting marketing campaign and Musk has reportedly issued orders to sluggish and even halt funds to distributors and contract providers. The transfer has sparked complaints from Twitter insiders and distributors who’re owed tens of millions of {dollars} in again funds. 

Musk introduced in allies from Tesla, his household workplace and The Boring Firm with the directive to “reduce, reduce, reduce,” in accordance with the article. As such, Twitter is asking workers to evaluate, renegotiate and even not pay some exterior distributors, in accordance with NYT‘s sources. Some areas beneath evaluate embody computing prices, journey, software program providers, actual property and even in-office cafeteria meals. 

Twitter is reviewing partnerships with sports activities leagues just like the NFL and NBA, together with media firms together with Condé Nast and Fox. It is also making an attempt to renegotiate offers with tech companies like Amazon and Oracle that present computing providers. As well as, company bank cards have been shut off, free lunches eradicated and expense report funds delayed. And the corporate has reportedly not delivered checks beforehand promised to charitable organizations. 

Musk took on $13 billion in loans as a part of his acquisition of the social community, with curiosity funds supposedly amounting to $1 billion annually. He has advised staff that the “financial image forward is dire” and “bankruptcy is not out of the question.” Twitter has slashed half of its 7,500-strong work pressure, seen mass resignations and reportedly terminated a majority of its contractors, lots of whom labored on policing content material.

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