In the midst of the restructuring and cost-cutting at Twitter post-Elon Musk takeover, reports have indicated that the tech giant has failed to pay many of its suppliers.
According to the New York Times, Musk and his advisors are currently examining all expenses at the social media company and with that, some of the Twitter’s vendors have gotten stiffed. The company has taken on a drastic cost-cutting pattern and Musk has now issued and order to slow down or halt payments to its vendors and contract services. The move to do so has caused Twitter’s suppliers to be in an uproar. Some are even losing out in the millions without payment from Twitter.
The article states that Musk is currently looking to “cut, cut, cut,” making it his top priority at Twitter. Due to the recent measures, Twitter is now asking its staff to review and renegotiate with vendors and even go as far as not paying them for now. Suppliers include in-office cafeteria food, real estate, software services, travel and computing costs. In order to acquire Twitter, Musk took out $13 billion USD in loans with an interest payment that amounts to $1 billion USD each year. Twitter is currently reviewing its partnerships with major sports leagues like the NFL and NBA, as well as with other companies like Condé Nast and Fox. Corporate credit cards have been cut off as are free lunches. Twitter reportedly has not delivered cheques promised to charity organizations.
It remains to be seen what can be done.
In other Twitter news, Elon Musk recently clarified that he makes all final decisions on posts despite the company having a moderation council.
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