Elon Musk Shuts Off Corporate Credit Cards for Twitter Employees: Extreme Cost-Cutting Measures
Elon Musk\'s acquisition of Twitter for $44 billion has triggered a wave of cost-cutting measures, and the latest reports indicate a significant shift in company policy. According to The New York Times, Elon Musk has shut off corporate credit cards for Twitter employees, impacting their ability to conduct business and highlighting the extreme measures being taken to reduce expenses.
This move is part of what has been Elon Musk\'s aggressive push to slash expenses, which has surpassed even the mass layoffs that initially followed the acquisition. Among what has suffered Musk\'s scrutiny include costs that support Twitter\'s daily operations.
Impact on Employees and Operations
The decision to disable corporate credit cards is reportedly causing significant disruptions. The DOGE-mandated credit card freeze is delaying shipments of critical supplies, stalling travel, and stopping employees from doing their jobs. The impact isn\'t limited to large expenses; even smaller purchases are now proving difficult. One worker shared her experience:
One worker said she tried to buy farewell drinks for colleagues after the mass layoffs, only to have her corporate credit card declined at the bar. Corporate credit cards for Twitter employees have also been shut off, the report said.
Unpaid Bills and Policy Changes
Adding to the financial strain, reports suggest that Elon Musk is refusing to pay hundreds of thousands of dollars in travel bills accumulated by Twitter employees before he took over the company. This further intensifies the perception of cost-cutting at the expense of employee welfare.
Former employees with rejected expenses are being told by email the expenses fall outside of a new policy enacted about three weeks ago by Twitter HR under Musk\'s leadership. This retroactive application of the new policy has further angered former employees who now face personal financial burdens due to unpaid company expenses.
The situation echoes concerns raised elsewhere. The Elon Musk–led push for government cost-cutting has come for federal workers’ credit cards, hampering workers’ ability to buy basic supplies, according to several reports, suggesting a pattern of stringent financial control implemented across Musk\'s various ventures.
The long-term effects of these extreme cost-cutting measures on Twitter\'s operations, employee morale, and overall business strategy remain to be seen. It appears that Tech billionaire Elon Musk\'s cost cutting measures after acquiring Twitter in a $44 billion deal has surpassed mass layoff- and according to reports has trickled down to even the smallest expenses.