Twitter has been asked to evict its office in Colorado due to non-payment of rent. The company has not fulfilled its rental obligations since March this year, leading a judge to authorise the assistance of the sheriff in evicting Twitter office from the Colorado premises within the next 49 days.
As stated in a Denver Business Journal report, Twitter had initially provided a $968,000 letter of credit to the landlord when it leased four units in the building back in February 2020. The office space, spanning 65,000 square feet, is situated at 3401 Bluff Street in Boulder, Colorado.
Instead of regular rent payments, Twitter has been utilising the $968,000 letter of credit. However, this credit ran out in March and the company has since neglected rent payments.
In response, the landlord filed a lawsuit in Boulder District Court in May. A court order was issued on May 31, instructing the Elon Musk-owned social media content platform to vacate its offices within 49 days.
Twitter once had 300 employees at this office but according to the Colorado Department of Labor and Employment, cited by The Independent, it laid off roughly 87 employees as of November 2021, with an additional 38 individuals voluntarily leaving the company then. So it is unknown if any of the employees still work from that office or not.
The report also mentions that Twitter is facing another lawsuit by Avalanche Commercial Cleaning, a Boulder-based company, seeking approximately $93,500 in unpaid bills.
This is not the first time that Twitter is facing lawsuits for not paying rent. In January this year, the social media company was sued for not paying rent on its San Fransisco office. The company failed to pay $136,250 as rent to the landlord, Columbia Reit, for its office space in San Francisco. Twitter Inc — owned by billionaire Elon Musk — has leased the 30th floor of the Hartford Building in the western US city.
Many of the company's offices in various cities have been lying vacant due to the work from home or work from anywhere policy it adopted in the wake of the coronavirus pandemic.
However, since Musk took over the company last October, it has been asking several of its employees to return to office for work.
Twitter is also facing lawsuit over non-payment of dues for renting out two charter flights in October. The company owes Jet Services Group $197,725 and a case was filed in New Hampshire District Court last month.
Musk has repeatedly accused the company's former bosses of splurging on employees for food and other facilities, a charge denied by some staff. In a bid to cut costs, Musk has laid off over half of Twitter's global workforce from last year. The company has also reportedly closed its Sacramento data centre as part of its cost cutting measures.
(Edited by : C H Unnikrishnan)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
AAP protest today: Delhi traffic police issues traffic advisory, security at BJP headquarters beefed up
May 19, 2024 11:26 AM
BJP is planning to ban RSS, says Shiv Sena (UBT) chief Uddhav Thackeray
May 18, 2024 8:01 PM
Punjab Lok Sabha elections: Complete list of Congress candidates
May 18, 2024 4:08 PM
Punjab Lok Sabha elections: Check full list of AAP candidates and constituencies
May 18, 2024 12:59 PM