Twitter Skips San Francisco HQ Rent and Sells Office Equipment as Musk Cuts Costs: Reports

Twitter has skipped rent payments for its San Francisco headquarters and auctioned off office supplies under new CEO Elon Musk as the social media company seeks to bolster its financial position, reports said.

Twitter hasn’t paid rent for its San Francisco location or any of its global offices in weeks, three people close to the company told the New York Times.

Musk and his advisors hope to renegotiate the terms of the leases due to their reduced workforce following mass layoffs, the paper said.

The move was just one of Musk’s cost-cutting moves after paying $44 billion for the social media company in October.

In early November, Musk admitted that Twitter had seen a “massive drop in revenue.”

The company is also refusing to pay a nearly $200,000 bill for private charter flights made in the week Musk took over the company, according to a copy of a lawsuit filed in New Hampshire, the Times reported.

This image from Elon Musk's Twitter page shows Musk entering Twitter headquarters and carrying a sink through the lobby area.
Musk and his advisors want to renegotiate their lease commitment.
AP

Musk’s team is also considering what might happen if the company didn’t pay severance pay to the thousands of people who have been fired from Twitter since Musk came on board, sources told the Times.

About 7,500 employees worked at the site before Musk began shedding about half of his workforce.

Musk originally decided that the company would pay at least two months’ salary and an additional month’s severance pay to workers in the United States, in accordance with federal and state labor laws, but now Musk’s team is debating whether it should pay some of those months. the Times reported, citing two sources.

Many former employees are still awaiting paperwork formalizing their departure from Twitter, five people told the Times.

Twitter is also reportedly offering kitchenware, office supplies, and industrial-grade electronics for sale from its San Francisco office.

Musk and advisors are considering severance pay to ex-employees, the Times reported.
Musk and advisors are considering severance pay to ex-employees, the Times reported.
REUTERS

Some of the items listed include a 41-inch tall Twitter bird statue, a sculptural planter, chairs, projectors, televisions, desks and espresso machines, according to the listing by Heritage Global Partners.

The San Diego-based company handling the auction has released the details of the sell-off over the weekend with bids being accepted in January, the San Francisco Chronicle reported.

A representative from Heritage Global Partners told Fortune that the auction had nothing to do with Twitter’s financial health.

“They sold for 44 billion and we’re selling some chairs and desks and computers. So if anyone really thinks the proceeds from selling a couple of computers and chairs are going to pay for that mountain there, then they’re an idiot,” HGP’s Nick Dove told the outlet.

https://nypost.com/2022/12/13/twitter-skipping-rent-on-san-francisco-hq-selling-office-equipment-as-musk-cuts-costs-reports/ Twitter Skips San Francisco HQ Rent and Sells Office Equipment as Musk Cuts Costs: Reports

JACLYN DIAZ

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