Elon Musk has refused to pay Twitter’s travel expenses incurred before his takeover, the NYT reports.
Musk’s team has failed to pick up calls from travel vendors, sources told the NYT.
It comes as Musk has started to cut down on costs at Twitter, as Insider’s Kali Hays reported.
Elon Musk declined to pay the travel invoices Twitter had clocked up before his takeover, The New York Times reported on Tuesday.
Current and former Twitter staff told The Times that executives at the company racked up hundreds of thousands of dollars in travel invoices before the billionaire’s acquisition in late October. Twitter was planning to pay these invoices, the people told the publication.
However, when Musk became the owner of Twitter, he refused to pay off these bills, the former and current employees told The Times. Those working for the billionaire said Twitter’s previous management authorized the travel charges, not Musk, the people added.
Since Twitter’s ownership changed, Musk’s staff have avoided picking up calls from the travel vendors, the current and former workers told The Times.
The Times didn’t disclose an exact figure for the total amount of travel invoices. Twitter didn’t immediately respond to Insider’s request for comment made outside of US operating hours.
Twitter has put new guidelines in place for work-related travel, according to a company email viewed by Insider’s Kali Hays, which was sent on Monday to Twitter employees.
The email said travel for Twitter staff must be for “business-critical purposes,” and managers have to approve the trip and estimated costs before any arrangements are made.
Senior vice presidents or members of “CEO staff” are able to splash $20,000 for a work-related trip, while a vice president can spend $10,000, a director $5,000, and a manager $500.
Twitter made it clear in the email to staff that it was cutting back on costs. The company said it had “discontinued” a number of perks, such as home WiFi, wellness, and quarterly team activities. Free lunches, which Musk said cost more than $400 per meal in the past 12 months, might also be slashed as the company said it was moving to a “partially paid model.”
Twitter said in the email that it was facing “a challenging economic climate where greater attention to cost management is essential.”
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