Many people remember when Elon Musk came carrying into Twitter’s headquarters carrying a sink with the following comment: “Let that sink in” Funny! the world’s richest man had just bought Twitter $44 billion. Not only has he completely destroyed Twitter, changed the name to X and lost at least 85% of the company’s value, but now he also has to pay billions to ex-employees.
Elon Musk and his social media platform X have reached a preliminary settlement with former employees worth $500 million, equivalent to approximately NOK 5.3 billion.
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The settlement is stated in a letter on Wednesday to a California court, in which the parties are asking for a postponement of a scheduled court hearing in order to finalize the agreement. Musk laid off around 6000 employees when he took over Twitter in 2022 and changed the name to X.
Several of the former employees initiated legal proceedings and demanded, among other things, payment of the agreed severance package. According to the lawsuit, the company had in 2019 negotiated agreements that entailed the right to two months’ severance pay for all employees, and more for those with longer seniority. Some managers were entitled to up to six months’ salary. When the redundancies took place, many received either no compensation or only one month’s severance pay.
If the settlement is approved, it will end the class action lawsuit in California. However, other lawsuits against the company continue in both California and Delaware.
The world’s richest man, sinking! – and if you’re an investor, don’t go down.
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