Twitter is being sued by landlords for defrauding them of rent for their downtown San Francisco headquarters, where the platform has reportedly made significant cost savings under new CEO Elon Musk.
The company owes $136,260 in unpaid rent, according to a lawsuit filed Thursday by the Columbia Property Trust.
Twitter freeload reported early last month According to The New York Times, Musk and his advisers hoped to renegotiate the terms of the lease after mass layoffs.
Downsizing has already started.
Twitter closed its Seattle office, The Times reported on Friday — Reduced cleaning and security services. Employees were reportedly forced to bring their own toilet paper to work.
Musk twitter i bought It raised $44 billion in October and has been cutting costs ever since, though Musk has admitted to a “significant drop” in revenue.
Cleaning and security staff were also laid off from the company’s New York and San Francisco offices, where employees went on strike for higher wages. In San Francisco, Musk has shrunk the company’s footprint from his fourth floor to his second floor at 650 California Street, The Times reported.
On Christmas Eve, Musk ordered his staff to go to his Sacramento data center and shut down key servers as a cost-cutting measure, The Times reported.
Meanwhile, layoffs continue, and the company’s infrastructure and public policy divisions were cut last week, the report said.
Employees have been instructed to delay payments to contractors and vendors, including accountants and consultants working on important regulatory projects, The Times reported.
The company is also being sued for failing to pay about $200,000 for a private charter flight that took place the week Musk took office.
Employees expect more layoffs to come, the report revealed.
Twitter did not return requests for comment on the new lawsuit.
Musk has pledged to step down from leading the company after conducting a poll on whether he should step down. His successor has not yet been decided.
A billionaire bought a social media company, making him the first person in history lose $200 billionthe report was found.
https://nypost.com/2023/01/01/twitter-sued-for-not-paying-rent-on-san-francisco-hq-since-elon-musk-takeover/ Twitter sued for not paying rent for San Francisco headquarters since Elon Musk takeover