Science

Twitter would stop paying one of its San Francisco rents, group sued

Will Twitter cut costs until it forgets to pay rent? The social network, recently acquired by Elon Musk, is the subject of a complaint from the owner of his building at 650 California St in San Francisco, several local media outlets, including the Wall Street Journal, report.

$136,260 in unpaid rent

The US group is being accused by San Francisco building owner Columbia Reit of repeatedly failing to pay rent. According to the complaint, $136,260 was missing. The lawsuit, which was filed in the California Supreme Court, alleges a breach of contract with the landlord. The premises housed part of the Twitter services for several years. The building manager ordered the group to pay off debts for a room on the 30th floor of the building by December 21. Therefore, the social network did not comply with this ban.

The offending office has leased Twitter and several other companies since 2017. According to The New York Times, the group hasn’t paid rent for its offices around the world for weeks. The Wall Street Journal was contacted, the platform did not comment on the file.

Aggressive cost reduction

Since the $44 billion acquisition of Twitter in October 2022, Elon Musk has pursued an aggressive cost-cutting policy. More than half of the company’s employees would be laid off, and contracts with most subcontractors would be terminated. Global economic policy, which in recent weeks has led to the renegotiation of several contracts. In some cases, the group has refused to pay their bills, according to several sources close to Twitter, quoted by the New York Times in November.

Thus, the expense reports related to the travel of the firm’s employees would remain unpaid. Several vendors also denounce the non-payment of amounts required under previous contracts. At that time, our colleagues referred to millions of dollars in debt in some cases. From the moment he takes over, Musk will keep track of his new firm’s smallest expenses and aim to cut costs as much as possible. Take a look at Twitter’s central dining room, which has not been spared, with a drastic reduction in menu choices, according to staff.

Elon Musk has been repeating for months that Twitter’s financial position prior to its takeover was disastrous. Accounts can return to plus in 2023, the businessman assures.

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