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Twitter owes millions of dollars to suppliers, Elon Musk refuses to pay even after firing around 5,000 employees

Twitter owes millions of dollars to suppliers, Elon Musk refuses to pay even after firing around 5,000 employees

Elon Musk says travel vendors and contract services at Twitter won't get reimbursement because they were authorized by the former manager and not by him.

Twitter owes millions of dollars to suppliers, Elon Musk refuses to pay after firing around 5,000 employees Twitter owes millions of dollars to suppliers, Elon Musk refuses to pay after firing around 5,000 employees
Story highlights
  • Elon Musk is refusing to pay millions of dollars to travel invoices and other services.
  • The Twitter staff have reportedly been asked to “review” bills and even avoid paying some outside vendors.
  • The company reportedly needs to pay bills for computing, travel, software services and more.

Elon Musk is refusing to pay millions of dollars for travel invoices and other services that the social media company was supposed to pay before he acquired Twitter. The company's new boss says travel vendors and contract services won't get reimbursement because they were authorized by the former manager and not by him. Since then, Musk's staff has been ignoring the calls of travel vendors, the people who are familiar with the matter told The New York Times.

The people at Twitter have reportedly been asked to "review, renegotiate" and even avoid paying some outside vendors, according to the cited source. The company reportedly needs to pay bills for computing, travel, software services, real estate and even for office cafeteria food. These are some of the areas that are still under consideration.

Twitter is also reportedly re-considering partnerships with sports leagues such as the NFL and NBA, along with media companies like Fox. The social media giant is also said to be renegotiating deals with companies like Amazon and Oracle that offer computing services. It is not surprisingly to see that the company is struggling to pay to suppliers, considering Musk has already revealed that the company isn't generating enough revenue.

In the past few weeks, Elon Musk has taken some harsh measures to save costs because Twitter is currently not a profitable company. He has so far fired around 5,000 employees in over three weeks of times. In the first week of November, Musk first sacked 3,700 workers and he also fired those who were criticizing him on the platform.

Around 1,200 engineers voluntarily left Twitter due to Elon Musk's hardcore work demands, that too without perks. The platform had been spending money on a lot of things that Musk believes wasn't required, so he ended most of them. The remaining Twitter employees are now not getting some of the important benefits, such as allowances for wellness as well as free home internet.

Musk also reportedly stopped providing support for Outschool, daycare, quarterly team activities, and more. It was recently reported that the new Twitter boss is asking employees to pay for lunch, which the social media company used to offer for free. Twitter did cut a lot of its expenses, but the move irked many and insiders have started complaining about it. Some vendors, who are "owed millions of dollars" in back payments, are also disappointed.