According to inside sources, Elon Musk and his advisers are reviewing all types of spending on Twitter. The objective is to reduce the costs of the company by resorting to budget cuts in various sectors.
Twitter needs to rethink its business model
When taking over the social network in October 2022, Elon Musk was clear from the start: Twitter needs to completely rethink its business model. In this context, the boss of Tesla embarked on a massive cost-cutting campaign. He first cut half of the company’s 7,500 employees and then issued an ultimatum to his employees. Since then, according to sources, he conducted a thorough review of all other types of business expenses.
The personnel responsible for these inspections had to review, renegotiate, and in some cases not pay Twitter’s external vendors at all. In fact, Elon Musk and his advisers targeted several sectors that will have to deal with this reduction in costs. Among them, travel expenses, real estate, software services and even food were cited. Twitter finance staff ordered to comb company expenses and employee expense reports line by line “said inside sources.
The American Billionaire called on allies other companies, such as Antonio Gracias, former head of Tesla or Jared Birchall the CEO of neuralink, to examine the budget table of Twitter. According to the sources, their directive is simple: cut, cut, cut “. This has notably contributed to the massive layoffs the network has experienced. Furthermore, now all expenses for services must be approved by Jared Birchallthree people said.
What are the targeted sectors?
Among the targeted sectors, Elon Musk attacked to the various stays that the former leaders of Twitter have led. He refused to pay for the travel services incurred by the former managers of the social network. These would have racked up hundreds of thousands of dollars in travel bills that the platform planned to pay. But once the American billionaire took over the business, he refused to reimburse these invoices to the travel suppliers.
Following the massive layoffs, Elon Musk hopes to be able to negotiate or withdraw completely from certain corporate office commitments. Job cuts have significantly reduced the use of much of this real estate.
Twitter goes even further, because the platform has threatened some companies to no longer work with them, if they refuse to renegotiate the agreements of certain contracts. According to the sources, this is the case for Amazon and Oracle, among others, who provide IT and technology services to the social network.
Elon Musk also attacked Twitter Employee Benefits. According to inside sources, he wants to end the free lunches who ” cost over $400 per lunch served according to the new boss of the blue bird. He also expressed the wish to reduce financial aid for telephone and internet bills as well as childcare allowance.
All parts of the business who are currently experiencing budget cuts.