Elon Musk decided not to pay the rent of his offices with the intention of cutting expenses.
Elon Musk has once again taken a controversial decision that may bring him more than one problem. And the Twitter company has been denounced for not paying the lease of its office in San Francisco. A lease that has generated a debt of 136,260 dollars.
Since Musk is in charge of Twitter, the decisions he has taken have caused him more than one problem, although the tycoon justifies that all these decisions are ‘by and for’ the improvement of the company.
Among the drastic decisions, are to reduce costs and sanitise Twitter accounts. So, to reduce spending, Musk has decided to stop paying the rent of Twitter headquarters and its offices around the world.
In 2017 the company signed a lease until 2024 at the 30th floor of Hartford Building, a skyscraper located in San Francisco’s financial district. The owner of the building has reported the company after it failed to pay the rent.
In addition, Musk has proposed other changes to cut Twitter’s expenses, such as the dismissal of almost 60% of its staff, and probably considers not paying compensation to former employees, which could generate new complaints.
Musk is resorting to a drastic strategy to get reactivated the scarce business of Twitter, in order to recover its investment, of 44,000 million dollars, well above the real value that this platform holds. Because of the massive controversial decisions that are directly hitting the fortune of the owner of Twitter.
In recent months, the tycoon has managed to be the first person in history to lose $200 billion in wealth.