Twitter, a widely popular social media platform, is currently facing a legal challenge as allegations mount against Elon Musk, the CEO of Tesla and SpaceX, for carrying out mass layoffs that were considered illegal and unethical by many experts and employees.
As per reports, Twitter has been accused of violating labour laws by not providing adequate notice or severance pay to the affected employees. Musk had tweeted about the layoffs as part of his campaign to pressure Twitter into banning anonymous accounts that he believed were spreading false information about him and his companies.
In November last year, Twitter terminated nearly half of its workforce, which amounts to around 3,700 employees, as a cost-cutting measure enforced by Musk, who had bought the social media platform for $44 billion. Furthermore, many more employees left their jobs voluntarily, resulting in hundreds of resignations.
Twitter’s shadow workforce, comprising contract workers and vendors, has filed a lawsuit against Musk and Twitter, seeking compensation for the damages caused by the sudden termination. They allege that they were not given any prior notice or information about the layoffs, and were simply informed via email.
Twitter Inc TWTR.MX faced a lawsuit on Tuesday accusing the social media giant of illegally laying off contract workers without notice after Elon Musk bought the company last year, the latest action stemming from its massive job cuts.
The proposed class action, filed in San Francisco federal court, claims Twitter in November laid off numerous workers employed by staffing firm TEKsystems Inc without the 60 days of advance notice required by U.S. and California law.
This legal challenge has brought to light the treatment of contract workers and vendors in the tech industry, who play a vital role in the day-to-day operations of tech companies but often lack the same benefits and protections offered to full-time employees.
The case also raises questions about the accountability of tech companies and their CEOs, who often hold a considerable amount of power and influence over the industry. The outcome of this case may set a precedent for how companies are held responsible for the actions of their CEOs and could have wider implications for the tech industry.
In conclusion, Twitter’s legal challenge over Elon Musk‘s mass layoffs highlights the need for greater protection for all workers in the tech industry, and the accountability of companies and their leaders. This case could set an essential precedent for the future, and we await its outcome with interest.
The case is Gadala v. Twitter, 23-cv-1595, US District Court, Northern District of California (San Francisco).
The social media platform in January won a ruling requiring laid-off workers who had signed arbitration agreements to resolve their grievances about being cheated out of severance pay in closed-door hearings overseen by private judges instead of through a class-action suit in open court.