Musk’s cost-cutting hurts Goldman Sachs
Musk’s “cost-cutting exercise” contributes to a rapid growth in delinquencies of commercial real estate loans for Goldman Sachs. After Musk’s attempt to avoid taking over Twitter, he began seeking ways to cut costs, which included not paying rent. Now, Twitter’s landlord, Columbia Property, is suing and defaulted on its loan from Goldman Sachs as a result. (Goldman Sachs was part of a group of banks that provided $1.7 billion in loans to Columbia Property. The loan was secured against seven office buildings in San Francisco and New York, two of which accommodate large Twitter offices.)
Musk wants $1 billion Twitter infrastructure cut
To stem loses of $3 million per day, Musk asks Twitter’s teams until November 7 to find up to $1 billion in annual infrastructure cost savings. Internal company messages titled, ‘Deep Cuts Plan’, ask for between $1.5 and $3 million per day savings from servers and cloud services. Critics say the cuts could cause outages duing times of high demand. Source:
[Musk] is willing to introduce that risk to meet these goals
Some employesss ordered to work in the office every day of the week to meet the deadline.