February 6, 2023

Mr. Davis has directed Twitter employees to defer payments to various contractors or suppliers and try to negotiate lower amounts for those bills, according to two people familiar with Mr. Davis’ instructions. The cost of one of the company’s largest contracts, with large consulting firm Deloitte, has been a particular concern for Twitter’s leadership, who want to reduce what the company pays for security, tax preparation and other services, the two said. The company has stopped paying KPMG, an accounting and consulting firm that has been handling matters related to FTC compliance, they said.

While defaults owed to the companies have now been paid, it is unclear whether the company will continue to provide services beyond this year, according to a person familiar with the payout. Representatives for Deloitte and KPMG did not respond to requests for comment.

The company missed payments to Carrot and then renegotiated the contract with Carrot, a benefits provider for fertility services including egg and sperm freezing and in vitro fertilization, according to two people close to the company. On Thursday, Karot notified Twitter employees that the amount of maternity benefits will be halved for the new year. Representatives for Carrot did not respond to a request for comment.

Last week, Twitter fired cleaning staff and 10 corporate security personnel at its New York office, a sign it may close one of two buildings there, two people familiar with the matter said.

At Twitter’s San Francisco headquarters, where the company has defaulted on rent payments, Mr. Musk has done the same, concentrating staff on two floors and closing four. He also canceled cleaning services earlier this month after those workers went on strike to demand higher wages.

It made chaos in the office. According to four current and former employees, the smell of takeout leftovers and body odor lingered on the floor as people crowded into the more confined space. The bathrooms were dirty, these people said. And because cleaning services have largely ended, some workers have had to bring their own toilet paper rolls from home.



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