As Elon Musk Cuts Costs at Twitter, Some Bills Are Going Unpaid
Source: NY Times
Before Elon Musk bought Twitter last month, the companys executives had racked up hundreds of thousands of dollars in travel invoices that the social media service planned to pay.
But once Mr. Musk took over the company, he refused to reimburse travel vendors for those bills, current and former Twitter employees said. Mr. Musks staff said the services were authorized by the companys former management and not by him. His staff have since avoided the calls of the travel vendors, the people said.
Mr. Musk has embarked on an enormous cost-cutting campaign since closing his $44 billion acquisition of Twitter. He initially slashed half of the companys 7,500-person work force, fired workers and continued with layoffs as recently as Monday. But he has also conducted a sweeping examination of all types of other costs at the company, instructing staff to review, renegotiate and in some cases not pay Twitters outside vendors at all, eight people with knowledge of the matter said.
Mr. Musk and his advisers have trained their sights on computing costs that support Twitters underlying infrastructure, travel expenses, software services, real estate and even the companys normally lavish in-office cafeteria food. Twitters spending has dropped, but the moves have spurred complaints from insiders as well as from some vendors who are owed millions of dollars in back payments.
Read more: https://www.nytimes.com/2022/11/22/technology/elon-musk-twitter-cost-cutting.html
The Trump playbook. Don't pay your bills.
But WTF was going on that the previous execs managed to rack up hundreds of thousands of dollars of travel invoices? I'm curious what the details of those are. Such as over what period of time and how many people.
get it all. Assets and liabilities unless your contract states that any of the assets or liabilities are staying with the old owners or sometimes people try to get creative, like corporate raiders, and they will create a side corporation prior to the sale and move the debts over to that company. After which everybody involved splits up the carcass and bankrupt the entity that has the liabilities. This has also been done, quite successfully (unfortunately), over the years with companies that have pension obligations. The trucking industry engaged in this big time over the course of several decades. They kept buying and selling between themselves and shell corporations divvying up bits and pieces and bundling their Teamster pension obligations to this one and that. So you buy the trucks, real estate and customer contracts but you leave the pension obligations with the carcass that's left. They load up with debt, grab every dime they can and then bankrupt the company and throw the pension obligations back on the Pension Benefit Guaranty program run by the Feds. But they only cover so much also. There are other ills that happened to the Teamsters Pension Fund but the trucking companies did their best to make big promises about the future for workers in order to get the labor. They got the labor up front and then screwed the workers when it came time to make good on the promises. It happens in state and local governments all the time. Make big promises in order to get the labor and then cry poor and demand concessions. The old saying "a bird in the hand is worth two in the bush" is there for a reason.
won't pay his bills. Well, I guess he didn't get rich by spending money.
suspect it was on the employee cards, once the phone calls from travel agents.
What a piece of shit.
Then the blame game. Blame whomever you can think of.
Because he intends to run the company through bankruptcy, stiff the lenders, turn the site into a giant 4chan, and ultimately massively profit from user data.
What I dont understand is how the banks/lenders loaned this guy $12 billion dollars and almost immediately started talking about taking a haircut on the deal. And this was before the shit really hit the fan at Twitter.
If you or I went out and borrowed a bunch of money and immediately filed bankruptcy we would be called into court and investigated for bankruptcy fraud. Hopefully the lenders go after his personal assets.