It’s been a week since Elon Musk took over Twitter and the Tesla CEO faces a lawsuit by the employees over his plan to cut 3,700 jobs, which is nearly half of the workforce.
On Wednesday, Bloomberg reported Musk’s plans to cut staff as part of a bid to drive down costs following his $44 billion acquisition. Now there are consequences to that strategy.
Bloomberg also reported on Thursday that Twitter staffers filed a class-action suit in San Francisco federal court, claiming that the company’s decision to reduce costs or spending by cutting staff violates federal and California law.
The petition notes the Worker Adjustment and Retraining Notification (WARN) Act which forbids large enterprises from eliminating positions without at least 60 days of advance notification.
“We filed this lawsuit tonight in an attempt the make sure that employees are aware that they should not sign away their rights and that they have an avenue for pursuing their rights,” Shannon Liss-Riordan, the attorney who filed the complaint, said in an interview to Bloomberg.
The lawsuit is the latest in a week filled with news regarding Twitter under Musk as the owner now also hopes to have verified users pay $8 a month, which hasn’t gone over well for some, considering the consequences it could have.
Eduardo Razo is the Assistant Content Editor for BNM, which includes writing daily news stories on the news media industry. He can be found on Twitter @eddierazo_ or you can reach him by email at eddie1991razo@gmail.com.
