Twitter company goes on a tight budget

According to Elon Musk, Twitter is in such a bad financial position that he has had to cut costs “like crazy” in recent weeks. Among other things, the new owner terminated contracts with cleaning companies. As a result, staff sometimes have to bring their own toilet paper to the office.

According to Musk, the cost of Twitter was so high, that the company was on course to suffer a loss of 3 billion dollars next year. The situation, in his own words, left him no choice but to “rigorously cut costs”.

On Christmas Eve, Musk shut down one of Twitter’s data centers in the US city of Sacramento. A number of employees of the social network were afraid that this would cause big problems, but cost savings had a higher priority, the US business newspaper notes.

Twitter was hit by a major global outage on Wednesday. It is not clear whether that failure was due to the closure of the data center. Employees of the social network say to the US business newspaper that the shut down data center could have prevented the failure.

The data center closure was one of many drastic measures Musk has taken to cut costs. Twitter has also stopped paying millions of dollars in rent for offices, in Seattle, among others. Therefore, the company was evicted from the premises, reports the New York Times. Staff who worked in the office are instructed to work at home.

Also, the social media company no longer pays for cleaning and security services, for example. Employees have been instructed to renegotiate agreements or simply terminate them.

Leave a Reply

Your email address will not be published.