Twitter owes ex-employees $500 million in severance, lawsuit claims

Twitter is going through a second lawsuit claiming it owes at the least $500 million in severance pay to former employees. The proposed class motion filed by former Twitter senior engineer Chris Woodfield additionally alleges that the corporate focused older employees for layoffs, although the grievance doesn’t state his age.

Woodfield, who labored for Twitter out of Seattle, says the corporate repeatedly informed workers that they might obtain two months’ wage and different payouts in the event that they have been laid off, however that he and different employees haven’t acquired the cash. He has accused Twitter of breach of contract and fraud.

According to the lawsuit, Woodfield signed an settlement to arbitrate work-related authorized disputes that require Twitter to pay the preliminary charges to permit particular person instances to proceed. He says that he initiated an arbitration in opposition to Twitter earlier this yr.

But Woodfield claims Twitter has refused to pay the payment in his case, blocking it from going ahead. That declare was made by tons of of ex-employees in a separate case earlier this yr.

Twitter has not responded to that lawsuit, which claims it violated a federal legislation regulating worker profit plans by failing to abide by the phrases of a severance plan established earlier than Musk acquired the corporate.

Twitter laid off greater than half of its workforce as a cost-cutting measure after Elon Musk acquired the corporate final October. The firm has been accused in a number of separate lawsuits of disproportionately shedding girls and employees with disabilities, failing to provide advance discover of layoffs, and never paying promised bonuses to its remaining workers. Twitter has denied these claims.

Catch all of the Technology News and Updates on Live Mint.
Download The Mint News App to get Daily Market Updates & Live Business News.

More
Less

Updated: 19 Jul 2023, 07:57 AM IST