Home CryptocurrencyAltcoin Elon Musk faces class-action lawsuit over mass layoffs at Twitter

Elon Musk faces class-action lawsuit over mass layoffs at Twitter

by SuperiorInvest

Amid Twitter’s mass layoffs, employees are launching a class-action lawsuit against Twitter’s new CEO, Elon Musk.

According to multiple sources, Musk began massive layoffs at Twitter on November 4, reducing the company’s workforce by 7,500 people. The CEO was speculated to lay off up to 50% of Twitter’s workforce, or about 3,500 people, just days after acquiring Twitter for $44 billion on October 27.

In response to the layoffs, Twitter employees filed a class-action lawsuit against Musk in federal court in San Francisco, Bloomberg reported. reported. The lawsuit alleges that Twitter is violating federal and California law by firing employees without sufficient notice.

The measure specifically refers to the federal Worker Adjustment and Retraining Act, which restricts large companies from mass layoffs without at least 60 days’ notice.

Shannon Liss-Riordan, the attorney who filed the class-action lawsuit on Nov. 3, said all Twitter employees should be aware of their rights. Employees “should not be signing away their rights and that they have an avenue to assert their rights,” the lawyer noted.

Liss-Riordan is also known for suing Musk’s electric car company Tesla over similar claims in June 2022, when Musk. shear about 10% of its workforce. Tesla finally won case in closed-door arbitration instead of open court, while Musk reportedly called Tesla’s lawsuit “trivial.”

“He seems to be repeating the same playbook of what he did at Tesla,” Liss-Riordan said.

The layoffs are part of a number of changes underway at Twitter during Musk’s takeover, including paid account verification. According to reports, Twitter will Start charging for Twitter verification from November 7.

The mass layoffs are not limited to Twitter, as many companies around the world have been cutting workforces due to the continued slowdown in the tech industry. Tech giants including Meta, Amazon, Microsoft and Google were among them freezing hiring or cutting jobs for months.

Related: Saying “No Financial Advice” Gets You Out of Jail – Crypto Lawyers

Many crypto companies were also affected, adding to the impact of the ongoing crypto bear market. According to the data assembled from crypto data provider CoinGecko, cities like San Francisco, Dubai and New York are the hardest hit by cryptocurrency layoffs in 2022 so far.

Source: CoinGecko

The news comes after the New York Stock Exchange delisted Twitter on October 28 as the social media giant went private. Other crypto-friendly trading platforms such as eToro and Robinhood have also removed Twitter shares from their platform.

The main global cryptocurrency exchange Binance invested $500 million take an equity stake in Twitter. Binance CEO Changpeng Zhao said the investment has high potential in terms of monetization, freedom of speech in the crypto community as well as the opportunity to eventually “help bring Twitter to Web3.”

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