As a result of delayed payment, Twitter has threatened to withhold advertising payments on the Twitter app. Last Friday, The Information reported that Twitter is also late in paying AWS for cloud services it has not yet used. It is estimated that Twitter will pay AWS approximately $70 million over the next few months.
Elon Musk’s mission to reduce Twitter’s expenses is complicated by this news, which makes up for the fact that the app’s advertising revenues have declined since he took over last fall. The contract with AWS for cloud services was signed years before Musk acquired Twitter and was to remain in effect whether or not Twitter used the services.
Despite having barely used any of the AWS services, Twitter will not renegotiate the contract. Also, Twitter is unable to negotiate with GoogleGOOG +0.5% for an even larger contract. It has been announced by Amazon’s CEO Andy Jassy that eight Amazon Go convenience stores will close, leaving 23 remaining locations around the country. This is in addition to a recent announcement that some Amazon Go stores would be closed in the near future.
The company will still expand its grocery business, just through different formats. Four of the eight are located in San Francisco, two in New York, and two in Seattle. Both of these stores in Seattle had been temporarily closed and will remain permanently closed. As part of its study of its real estate needs, Amazon has also delayed the construction of its headquarters in Northern Virginia.
As of now, Amazon has over 8,000 employees assigned to the HQ2 site. The second phase, which is about to begin construction later this year, has a capacity of 14,000 employees. It is reported that John Schoettler, vice president of world-wide real estate, has agreed to move the groundbreaking back a little. He did not provide a date by which construction would begin.
It has also been reported that Jassy has mandated that the majority of Amazon’s corporate employees return to the office three days a week beginning on May 1.
Alexis Boutilier is from Vancouver, British Columbia. She has a high interest in all things tech and loves to stay engaged on all the latest appliances and accessories.