Yeah, the title of the article is pretty shocking but it appears to be true according to The New York Times. Elon Musk stops paying Twitter’s bills to save money. Although not paying bills is probably going to lead to lawsuits, the new CEO of Twitter is ready for a legal fight. Because he’s hoping some of his vendors, and former employees, choose not to sue him due to legal costs.
Elon Musk Stops Paying Twitter’s Bills To Save Money
According to the recent report by The New York Times, Elon Musk stops paying Twitter’s bills and “also instructed employees to not pay vendors in anticipation of potential litigation.” That’s right: He’s going the route of skip out on paying legitimate vendors, hoping to escape paying what the company owes because vendors find lawsuits too costly. Some think Elon Musk is not paying vendors to push them into accepting less money. Kinda like how a person will try to settle a debt for a lesser amount because they know the creditor wants to get some money instead of no money.
What Bills Isn’t He Paying?
People close to the company says the new owner hasn’t paid rent for the San Francisco headquarters and other offices around the world for weeks. Then there’s a private charter airplane company seeking reimbursement for an invoice of $197,725. It appears Elon Musk doesn’t want to pay that bill because the charges happened during the week of him purchasing the company. Thus, the previous Twitter management needs to pay those bills according to him. Will they? Probably not unless the private airline comes after them.
However, those two items are small compared to skipping out paying severance packages. Yes, the recent report states “Twitter’s leaders have also discussed the consequences of denying severance payments to thousands of people who have been laid off since the takeover, two people familiar with the talks said.” Will Elon Musk go through this action of not paying severance packages? There’s a possibility. The owner could not pay and wait for those former employees to sue him. Some will, others may not. Others could seek damages through their state’s Labor board. However, all of this takes time and money. And Elon Musk has plenty of money while many of his former employees do not. Thus, some may just forgo the trouble and just find another job.
If the new Twitter CEO does skip out paying severance packages that’s a horrible look for him. In addition, it could harm Twitter’s hiring in the future. Who would want to work for an employer who doesn’t keep its promises? I wouldn’t, and many other potential employees wouldn’t either. Because if an employer shows he or she is shady, and will change the terms of the work agreement at any time, then that employer isn’t worth working for.