Moderation may not be a predominant characteristic of the new owner of Twitter. Elon Musk, who spent $44 billion to buy the social network, appears to be resorting to increasingly drastic measures to reduce company expenses. According to The New York TimesTwitter has stopped paying rent on all of its offices around the world, including its headquarters.
The objective of this movement was to renegotiate most of the rental contracts and permanently cancel some of them, but the legal consequences have begun to appear on the scene. According to Bloombergthe tenant of the 30th floor of the Hartford Building, a skyscraper located in San Francisco, has sued the social network for not paying the rent for its offices.
Twitter faces lawsuit for breaching a rental agreement
Court documents filed in San Francisco State Court indicate that Columbia Reit 650 California LLC warned Twitter on December 16 that if it did not pay off its debt in five days it would end breaking the rental agreement. In response to the non-payment by the social network, the company decided to file a lawsuit for the $136,250 owed.
At the moment it is unknown if this situation could end in an eviction process or if the social network has stopped using these offices. In any case, it should be noted that the lawsuit filed last week has not fallen on Twitter’s headquarters, also located in San Francisco, but on a workspace located on the 30th floor of the Hartford building located near Chinatown.
The decision to suspend rental spending is only one piece of a plan of far greater cost reduction by Elon Musk. At the beginning of last December, Twitter was also sued for refusing to pay $197,725 for private flights by former marketing director Leslie Berland on the grounds that the service contract had not been fulfilled.
Besides, notes CNBC, the new CEO of Twitter expects to save about $1 billion a year in infrastructure costs by reducing the hiring of cloud computing services, including server storage space. This type of movement, according to the source consulted by CNBC, could put the operation of the social network at risk during moments of high intensity of use.
Images: Kevin Kreji (Flickr)
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