The layoffs undertaken by Elon Musk when he came to the helm of Twitter (renamed X) could well cost him more than expected. According to CNBC, legal proceedings were opened this week in Delaware, after the reunification of former employees who sought to recover the compensation they were promised when they were fired.
In total, about 2,200 files were submitted by former company employees, all of them without response and without payment. According to the US media, only the file fees could already cost the social network about 3.5 million dollars, within the framework of the procedure with JAMS, an organization specialized in conflict resolution.
80% of employees laid off
In fact, the company invoices close to 2,000 dollars per file, of which 400 dollars must be paid by the employee affected by the procedure. Thus throwing 1600 dollars in charge of the social network for each case.
However, the reimbursement of all these costs related to the redundancies could still take time to arrive, while the company advanced a few weeks ago to have finally found a financial balance.
Law enforcement attorneys said the company did not have to pay filing fees to former employees because they should not have tried to resolve those disputes through JAMS in the first place.
However, this is not the first case of a complaint filed by former Twitter employees. Last May, six former employees denounced Elon Musk’s plan to provide rooms to the offices of the San Francisco headquarters, so that employees give themselves body and soul to the company.
At the time, Elon Musk justified the dismissal of 80% of the company’s employees to save the social network from bankruptcy. According to the billionaire, Twitter only had “four months to live” if drastic measures were not taken.
Source: BFM TV
