It’s no secret that Twitter has fallen on hard times. And issues aren’t fairly wanting up for Elon Musk’s most up-to-date acquisition. The corporate is dealing with two contemporary lawsuits from completely different landlords, including onto a plethora of current authorized bother.
The UK’s Crown Property is suing Twitter over unpaid hire on the firm’s London Headquarters, in accordance with experiences from a number of information retailers together with the BBC, the Guardian and Bloomberg. The Crown Property manages property owned by the British monarch (i.e. King Charles III), which apparently consists of Twitter’s workplace area in central London close to Piccadilly Circus. The royal actual property company reportedly contacted Twitter about its rental money owed, to no avail, earlier than taking authorized motion final week.
It’s unclear precisely how a lot cash is tied up within the U.Okay. lawsuit. Gizmodo reached out to the Crown Property through e mail and didn’t instantly obtain a response.
Then, on the U.S. aspect of the Atlantic, very comparable bother is brewing. Twitter didn’t pay hire at its San Francisco headquarters in December 2022 or January, in accordance with a lawsuit filed by the constructing’s landlord in opposition to the corporate on Friday . The summons notifying Twitter of the swimsuit was filed Monday.
All informed, the social media platform owes SF actual property firm SRI 9 Market Sq. LLC $6,791,537.43, in accordance with the complaint. Twitter rents area on eight flooring of 1355 Market Sq., totaling 463,855 sq. ft, the swimsuit says. Though a December New York Times report famous that Musk had consolidated staff onto simply two flooring.
Already, the social media firm was dealing with a swimsuit from another San Francisco landlord over alleged unpaid hire at a smaller workplace area within the metropolis. In that case, the owner, Columbia REIT-650 California LLC, has mentioned that Twitter owes $136,260 in again hire.
The lawsuits all observe earlier reports that Twitter had knowingly opted to cease paying hire as a price chopping measure, following billionaire Musk’s takeover. And whether or not you agree with the Chief Twit’s strategy or not, Twitter most likely actually does want to chop again on spending if it’s going to remain afloat—in no small half due to Musk’s questionable buy. As a part of the multi-hyphenate CEO’s acquisition, Musk took on nearly $13 billion in loan debt, which will probably be paid again from the corporate’s coffers to the tune of $1 billion per 12 months.
Twitter’s essential income, advert gross sales, has additionally been dwindling in current months. Musk’s doubtful “free speech” bent has scared off among the firm’s longtime advertisers like United Airways and Common Motors. Within the seek for new income streams, Musk has pushed site subscription and floated concepts like selling off user names. It’s unclear if both of these methods have made a dent but, and Twitter not has a PR division, so it’s troublesome to ask.
Even earlier than the burden of Musk’s debt and persona, Twitter hardly ever made a revenue. The corporate entered the black for the primary time within the last quarter of 2017. And 2019 was its only ever profitable year, since going public in 2013. Musk has apparently been attempting to show the development of loss round, since paying some $44 billion for the flailing social media web site in 2022.
On prime of the skipped hire, different cost-saving measures embrace worker cuts, benefits reductions, and a literal furniture auction. Twitter has slashed its employees from about 7,000-7,500 staff to less than 2,000 by way of multiple rounds of broad layoffs, a supply near the matter informed Gizmodo. And that’s not together with all of the janitors and amenities staff that the corporate stopped paying.
Predictably, all of these rapid-fire firings have led to…extra lawsuits. There are at least three employment and discrimination cases in opposition to Twitter pending in California courts. And I’m no monetary skilled, but it surely looks like this rising pile of court docket proceedings may get costly.