Twitter Employees Sue Elon Musk as Company Layoff Begins

LAGOS (CoinChapter.com) — Several Twitter employees have filed a class action lawsuit against Elon Musk following an announcement that the company will layoffs 50% of its workers on Nov 4.

The employees in the lawsuit argue that Twitter layoffs violate the country’s labor law. They allege that Twitter was conducting mass layoffs without providing the required 60-day advance notice mandated by federal and California law.

Attorney Shannon Liss-Riordan, who filed the lawsuit on behalf of the employees, stated that Twitter must be held accountable. She explained that the world’s richest man cannot be allowed to trample on the law, saying “Elon Musk has made clear that he believes complying with federal labor laws is ‘trivial’.”

It is worth noting that the Worker Adjustment and Retraining Notification Act (WARN Act) requires that an employer with more than 100 employees must provide 60 days’ advanced written notice before a mass layoff affecting 50 or more employees at a single site of employment.

Recall that Twitter, according to a memo sent to staff, will begin laying off 50% of the employees today. The company, in an email to staff, said they’ll receive a notice on Friday informing them of their employment status.

At press time, many Twitter employees are bracing themselves to hear whether they will fall victim to Elon Musk’s mass sackings. Some Twitter employees already indicated they no longer have access to the company workspace and Slack group.

Eric Idle Slams Elon Musk Says He Stole Twitter Verification Plans

Meanwhile, layoffs and controversial policies have defined Elon Musk’s era as the owner of Twitter. He has floated a number of ideas to make a profit on Twitter, which has resulted in public criticism and outcry.

Musk has announced a plan to charge for verified badges as well as create an “everything app” that would combine several platforms into one. Musk has also reportedly directed Twitter’s teams to find up to $1 billion in annual infrastructure cost savings.

The world’s richest man’s ideas have further increased the chaos and uncertainty currently bedeviling the company. For example, Alexandria Ocasio-Cortez, US representative for New York, slammed Elon Musk’s move to introduce $8 for verification on Twitter.

Also, English actor Eric Idle claimed that the Twitter CEO stole ideas about charging people for complaining from Monty Python. Idle further said he would leave the social media platform instead of paying for verification.

In less than two weeks since he acquired the company, Musk, who has cleared out the top executives, doesn’t seem to be fazed by the outcry. In fact, in a series of tweets, Musk has gone on to mock people who disapprove of his current plan.

He said, “Being attacked by both right & left simultaneously is a good sign.”

Tesla(TSLA) Stock Plummets

The current Twitter layoffs are having a negative impact on the stock value of Elon Musk’s electric car company, Tesla. TSLA’s year-to-date performance has dropped by almost 50% as the social media platform continues to adjust to the new development.

Moreover, since Elon Musk bought Twitter, Tesla stock has also dropped 10%. Investors have pointed out that the new company will be another distraction for Musk, especially as the EV market becomes more competitive.

Musk currently runs three other companies in addition to Tesla and Twitter. He is the CEO of rocket company SpaceX, brain-chip startup Neuralink and tunneling firm the Boring Company. However, on the day, Tesla stock was up by almost 1% and trading at $215.

Meanwhile, it is worth noting that Twitter’s stock has already stopped trading on the New York Stock Exchange. It was listed on the NYSE in 2013, but following Musk’s acquisition, the social media platform became a private company.

Additionally, it is worth mentioning that Twitter shareholders will be paid $54.20 per share.