Elon Musk has been having a tough time managing Twitter ever since he bought the company for $44 billion. He has laid off nearly half of the workforce, including some top executives like the CEO and CFO, etc. This led to mass resignation from some workers as a protest.
The social media giant has not paid severance to any of its laid-off employees. This resulted in several of them filing a lawsuit against the company. So let’s find out why Musk doesn’t want to pay severance it the people he fired right after the acquisition.
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Elon Musk-Owned Twitter Hasn’t Paid Severance To Its Fired Workers
Musk went on a firing spree right after he bought Twitter for $44 billion. He attributed laying off nearly half of the employees as a means to cut costs for the company.
As per state and federal law, some of the employees who lived in California had to receive paychecks for two months, along with other remunerations. However, that 60-day period of the termination date came to an end.
At that time, Musk had tweeted that everyone “was offered 3 months of severance.” To cut costs, Musk also stopped commuter benefits and meal allowances to his workers.
Twitter has been facing several unpaid bills for things like private chartered plane flights, software services, and the rent of one of its San Francisco offices. For the latter, its landlord has filed a lawsuit against the company.
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What Did The Attorney Say?
Lawyer Shannon Liss-Riordan has filed arbitration cases and many federal class-action lawsuits regarding the termination. “No one has gotten any severance pay,” she said.
“We don’t know what Elon Musk is doing, we expected that those severance agreements would have been sent out by now, because a lot of people had their last official day,” Liss-Riordan added.
She continued, “We’re wondering what he’s planning to do but meanwhile we’re pushing forward with our legal actions.” Several employees who were fired were pregnant or had some health issues. They have stated that there is no clearance regarding their insurance.
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