Elon Musk has lost a legal battle over unpaid severance pay to former Twitter employees who were fired when he took over the social media platform in 2022, News.Az reported citing Gazeta.Ru.
The resolution of the dispute, which was handled through arbitration, comes nearly two years after Musk bought Twitter for $44 billion and immediately fired more than half of its employees.
The arbitration tribunal decided that the plaintiffs “shall receive their full severance pay.” According to the lawyers, such a decision could help other employees of the company who have not received their severance pay. Fifteen other similar cases are being heard in arbitration, and further satisfactory decisions are expected in the coming months.
In 2022, Musk completed his acquisition of Twitter for $44 billion and laid off more than half of the social network’s employees, resulting in the company’s headcount dropping from 7,500 to about 2,000. Former employees of Company X have filed roughly 2,200 arbitration claims against Musk for unpaid post-termination benefits.
News.AZ