"Don't Spend Money" Musk Doesn't Even Pay Twitter Office Rent

[Asia Economy Reporter Jeong Hyunjin] Elon Musk, CEO who acquired the social networking service (SNS) Twitter and started cost-cutting measures, has been confirmed to not even pay the office rent. In addition to refusing severance pay to the laid-off employees, Musk CEO is focusing on reducing costs and securing cash by auctioning off Twitter's internal fixtures.

[Image source=Reuters Yonhap News]

The New York Times (NYT) reported on the 13th (local time), citing multiple sources, that Twitter has not paid rent for its San Francisco headquarters and global offices for several weeks recently. Sources said that Musk CEO's team, having laid off a large number of employees, is discussing with real estate investment and management companies to renegotiate office lease terms.

Twitter management is also reported to have considered refusing severance pay to thousands of retirees laid off since the acquisition. Initially, when Musk CEO and his advisory team reviewed layoffs last October, they intended not to pay severance at all, but due to legal issues, they later decided to provide at least two months' salary and one month's severance pay, according to NYT.

After laying off some executives, Musk CEO already refused severance pay, claiming it was a 'dismissal with cause.'

In addition, Twitter auctioned off kitchen appliances and office fixtures to cut costs. Items up for auction include kitchen appliances such as coffee machines and stand-type beer refrigerators, which appear to have been installed as welfare facilities within the office building, as well as '@'-shaped flowerpots, work chairs, and projectors.

Twitter also refused to pay $198,000 (about 260 million KRW) for the private charter flight expenses incurred in the week Musk acquired Twitter as a cost-saving measure.

NYT explained, "Musk CEO continues to take bold measures to reduce Twitter's costs," adding, "He is making changes or breaking contracts previously made by Twitter to leave his mark."

This content was produced with the assistance of AI translation services.