Articles Posted in Layoff

Twitter’s new CEO, Elon Musk, cannot stay out of the courtroom. Just a few months ago, Twitter sued Mr. Musk after he attempted to walk away from purchasing the company despite the parties reaching an agreement. The court set Twitter’s lawsuit for trial in October 2022. Weeks prior to the trial, Mr. Musk unexpectedly agreed to proceed with his original offer to purchase Twitter.

When Mr. Musk officially acquired Twitter, he immediately terminated the company’s top executives. Mr. Musk did not stop there; subsequently, he randomly laid off several employees without notice. As a result, these employees are suing Twitter for not giving proper notice regarding their layoff. Less than a month into Mr. Musk’s leadership of Twitter, Mr. Musk and his company are back in the courtroom. One would think that an experienced executive would consult an attorney prior to unreasonably exposing his company to potential liability, but not Mr. Musk who seems to make impulsive decisions.

The employees’ lawsuit alleges that Twitter violated the WARN Act when Mr. Musk announced that he would be reducing Twitter’s global workforce. It was speculated that the layoff could affect 50% of Twitter’s workforce. Since this lawsuit, Twitter has taken measures to reduce its potential liability under the WARN Act.

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