ZerroHedge is reporting that Political missed a staff payday, and believes the cut of USAID funding may be why, as Politico got millions in government money, including some USAID money for subscriptions:
Original: https://www.zerohedge.com/political/politico-ny-times-propped-millions-dollars-us-government
Archive: https://archive.is/gkrOV
This explanation is a huge red flag.
There's really only a handful of reasons this could happen.
Payroll person submitted late, but in that case employees would get their deposits the following business day.
Payroll person didn't wire funds to the payroll company late, or the payroll company submitted a funds pull request that got rejected by the bank or wasn't approved in time by the payroll department.
Insufficient funds
None of these require investigation because the reason is immediately obvious.
The only way it makes sense is if they recently switched to a new payroll provider and this was the first live run, but even then the reason should be obvious.
I mean it’s likely a coincidence; I would be shocked if they kept so little cash on hand that missing a single month’s revenue would send the company into bankruptcy. That said, I would expect to see a couple layoffs from the end of the payments
Once you have a working system that has been in operation for long enough, its very likely that they cut back to the barest minimum. Which could be paying their employees with the check they get the day before from the government. That would also mean they both might not recognize or be quick enough to use the cash on hand to solve the issue because of how used they are to not thinking about it.
Exactly, they might be doing their own form of living paycheck to paycheck like us poors do.
Even a company that's doing well, what are they supposed to do, leave their millions in cash just sat there to immediately access and be stolen by inflation? And not earn interest?
They're running by just-in-time inventory and payroll. Because the gov punishes you for not. Which is insane.