Elon Musk refused to pay travel expenses Twitter incurred before he took over the company, according to The New York Times.
Twitter executives racked up hundreds of thousands of dollars in travel invoices, which the company intended to pay, the New York Times reported on Tuesday, citing unnamed current and former employees.
The travel charges were reportedly approved by Twitter’s previous management.
But when Musk bought the platform, he declined to pay the bills and his staff have avoided calls from travel vendors, sources told the publication.
Twitter did not immediately respond to a request for comment.
Musk has put several cost-cutting measures in place since closing his $44 billion Twitter acquisition last month. He laid off half of Twitter’s 7,500-person workforce and has cut the company’s contract workforce.
Musk has warned staff to prepare for “difficult times ahead” and described a dire economic environment that would impact Twitter’s advertising revenue. Some advertisers have paused spending on Twitter since Musk bought the company.
“Without significant subscription revenue, there is a good chance Twitter will not survive the upcoming economic downturn,” Musk told employees in an email this month, according to the Associated Press.
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Musk delays Twitter Blue verification
Musk has bet on Twitter’s subscription service as a revenue stream for the company, which relies almost entirely on advertising to make money.
The platform launched a revamped Twitter Blue that gives users a blue verified badge for $8 a month. But Twitter paused the program just a few days later after fake verified accounts flooded the platform and sowed confusion.
Musk said Monday Twitter is holding off the relaunch of Twitter Blue Verification “until there is high confidence of stopping impersonation,” adding the platform might use different colors for organizations and individuals.
He previously said the service would be back on Nov. 29.
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Twitter layoffs, ‘hardcore’ ultimatum
One of Musk’s first moves as Twitter’s head was laying off half of the staff earlier this month. Since then, the Twitter exodus has continued to grow after a reported wave of resignations last week.
Musk asked employees to commit to an “extremely hardcore” work environment or leave the company. Workers reportedly resigned after Musk’s deadline for employees to decide whether they wanted to continue in the company.
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