Forced to buy Twitter despite his lack of love, Elon Musk is trying to slash the company’s operating costs and improve its profitability. Having proposed an account certification at $8 a month, not without creating user irritation, the billionaire has now embarked on a major layoff plan on Twitter.
In total, 3,700 posts, or half the workforce, should be eliminated. And it has not dragged on since the first exits were announced this Friday, a week after the takeover bid was formalized.
“We will begin the difficult process of downsizing our global workforce on Friday,” Twitter told employees Thursday in an email. The message says that all employees will receive information Friday morning when the California office opens, but does not specify how many people will be affected.
The earlier Tesla
But a parallel class action lawsuit has already been filed in federal court in San Francisco, announces Bloomberg. In particular, federal law prohibits large companies from carrying out mass layoffs without at least 60 days’ notice.
On Twitter, the lawyer Lisa Bloom indicated that the company, if it does not respect this notice, would be exposed to a daily fine of 500 dollars per employee as well as the obligation to pay back wages.
This is not the first time that Elon Musk has been the subject of unfair dismissal claims. His other company, Tesla, is also being sued for violating federal law after laying off 500 employees last June. The 60-day notice period was not respected. A lawsuit that Elon Musk had considered “insignificant” with Bloomberg.
Source: BFM TV
