Updated January 3rd, 2023 at 17:22 IST

Elon Musk hit with new lawsuit, Twitter sued for not paying rent on San Francisco HQ

The lawsuit came to light after it was reported that the headquarters is undergoing major cost-cutting under the reign of its new owner.

Reported by: Bhagyasree Sengupta
Image: AP | Image:self
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Social media networking site Twitter is all set to add another lawsuit to its long list as the tech giant is being sued by its landlords for not paying rent for its San Francisco headquarters. According to the New York Post, the lawsuit came to light after it was reported that the headquarters is undergoing major cost-cutting under the reign of its new owner, Tesla CEO Elon Musk. In a lawsuit filed last week by the Columbia Property trust, it is stated that the company owes $136,260 in unpaid rent, the report stated.

While the downsizing has already begun, The New York Times reported last month that Musk and his advisers were eyeing to renegotiate the terms of the lease following the mass layoffs. The NYT also reported on Friday, that the company has closed its Seattle office and decided to cut janitorial and security services in the organisation. In the past, the new Twitter owner Elon Musk has admitted that the company is trying to “cut cost” through different policy changes. 

The company is imposing several cost-cutting measures as they navigate the lawsuits

According to The New York Times, on Christmas Eve, the Tesla CEO ordered the staff at the Sacramento data centre to shut down key servers in an effort to cut costs. The company still hasn’t stopped with the layoffs as the social media networking site has made several cuts in the company’s public policy divisions. The report also revealed that the company is being sued for failing to pay almost $200,000 for private charter flights the week Musk formally took over in October. 

The saga of lawsuits for Twitter is far from over, the social media networking site is already facing a class action lawsuit that was filed by more than 100 former Twitter employees against the mass layoffs conducted by Musk. The lawsuit also includes the accusation made by two former employees of Twitter who claimed that Musk’s company “unfairly” fired more women than men. While Twitter urged the California Federal court to dismiss the case stating that there is “nothing common” between the accusation hurled by the plaintiffs, the current lawsuit over the rent of the San Francisco headquarters indicates that Musk’s Twitter is in deep waters.

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Published January 3rd, 2023 at 17:22 IST