Promises of stock grants and new offices are usually appealing to tech employees, but Elon Musk’s offers have made employees at his social media service skeptical.
Staff at X, formerly known as Twitter, received some typically welcome news recently. Last week, Musk told staffers he would grant them new stock if they could prove in a memo that their recent work merited compensation. Meanwhile, in early August, CEO Linda Yaccarino announced plans to close the company’s longtime headquarters in San Francisco and move employees to smaller offices outside the city.
In both cases, many of X’s employees reacted with a shrug. In the two years since Mr. Musk took over as owner, the company has made numerous promises that it has often broken or failed to deliver on.
Employees have not received any further details since news of the office relocation broke three weeks ago. In the absence of official information, employees have been left to spread rumors, the latest of which is that they will be evicted by the end of August, less than a week away. But no one has yet begun to pack up what few belongings remain in an office that has seen a bloody tragedy with thousands of layoffs and resignations in the two years since Musk bought the company.
“We haven’t been informed of any changes,” one current staff member told Fortune.
The story is based on interviews with two current employees and one former employee who is still in contact with current employees, all of whom requested anonymity for fear of being fired for speaking out publicly.
Company X did not respond to an email seeking comment.
In the only email announcing the office closures, Yaccarino told X’s San Francisco staff that they would be relocated to one of two offices in Palo Alto, California, an hour away, or a little further away in San Jose. No one was told which office they would be assigned to.
The CEO also mentioned “transportation options,” a nod to commuter shuttles like those offered by some big tech companies to their employees. No further details were given, leaving employees wondering how they’ll get to work after the move, according to sources.
The same staffer responded to Fortune’s question about the promised stock compensation with a sarcastic “lol.” About a year ago, employees at X were required to send weekly and monthly emails to their managers explaining their work and its positive impact on X. Some managers don’t enforce the rule, according to two staffers, but others do. “No one knew where the emails went,” one of the sources added.
Some employees are not hopeful that the stock grants will ever materialize. Five months ago, employees at Company X were told they would receive additional stock grants after their annual performance review period ended. But two current employees said the grants never happened.
Musk has a history of failing to make payments to individuals and entities associated with X. In addition to the thousands of rank-and-file employees who were fired or subsequently forced into class action arbitration without receiving promised severance pay, several former Twitter executives who were fired shortly after Musk acquired the company are suing for large severance payments that Musk refused to pay them. Former directors have also filed lawsuits, and several vendors and landlords have also sued Musk for refusing to pay them.
The latest stock offering has some employees reluctant to have to write another note about their contributions to the company, given the skepticism surrounding it. Musk’s email didn’t clarify whether the offer is actually new or a rehash of long-anticipated rehiring incentives.
In any case, many employees don’t see the stock grants as a financial benefit: Given that Company X’s business has struggled, due in large part to a sharp decline in advertising revenue, the restricted stock units are “essentially worthless,” one employee said.
Under Musk, Company X issued restricted stock only once, and to a limited number of employees. The grant came about a year after it was promised, leaving Company X worth nearly 60% less than what Musk paid for it. The shares came with restrictions: employees had to hold them for a year, after which they could only be sold to an approved group of outside investors. With Company X’s business struggling and limited investor interest, the shares aren’t worth much, one source said.
“We don’t see a liquidity event right now,” one staff member said.
Are you an X employee or have insights and tips? Contact Kali Hays securely on Signal at +1-949-280-0267 or kali.hays@fortune.com.
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