Elon Musk provided severance to Twitter employees after acquiring the company. However, the severance packages were smaller than expected.
After Musk’s takeover, laid-off Twitter employees received severance payments that were “less than expected,” according to a Fortune report. On average, the severance package amounted to about three months of salary, falling short of the anticipated six months.
Moreover, the length of service at Twitter affected the severance packages. Employees who had been with the company for over five years received only four weeks of salary per year, while those with less than five years received only two weeks per year.
The inadequate severance packages resulted in multiple lawsuits against Twitter. One lawsuit claims that the company violated federal law by not providing sufficient severance pay. The damages sought in this lawsuit exceed $500 million.
In another lawsuit, a former Twitter engineer alleges that the company discriminated against older workers during the layoffs, purportedly for cost reduction purposes.
Twitter denies all allegations made in the lawsuits, asserting that it paid all laid-off employees in full and did not discriminate during the layoffs.
The lawsuits are currently pending, awaiting court rulings. These legal actions have raised serious concerns about Twitter’s handling of the layoffs and its compliance with relevant laws.
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