Social Media Giant Plunges into Legal Battle Amidst Mass Layoffs

Following his substantial $44 billion acquisition of the social media giant Twitter, new CEO Elon Musk swiftly initiated a significant restructuring plan, which prominently featured widespread job cuts. This move brought a week of intense uncertainty for employees to a head, as the company moved to reduce its 7,500-strong workforce in an effort to slash costs and implement a more demanding work ethic.
Twitter communicated its layoff plans to employees through email, informing staff that reductions would commence by Friday at 9 a.m. Pacific time. The company's internal memo acknowledged the impact on valuable contributors but asserted that these actions were "unfortunately necessary to ensure the company’s success moving forward." In conjunction with the layoff announcements, Twitter temporarily closed its offices and suspended all badge access, citing the need "to help ensure the safety of each employee as well as Twitter systems and customer data." Employees unaffected by the layoffs were to be notified via their work email addresses, while those who were laid off would receive next steps at their personal email accounts.
The announcement triggered widespread chaos and uncertainty among Twitter’s staff. Reports indicated that the Thursday email was the first direct communication employees had received since Musk's acquisition on October 27. Employees described the situation as "total chaos," with many "looking towards this email" for clarity. Some employees, anticipating the changes, expressed a willingness to accept severance, while others voiced apprehension regarding Musk’s leadership style. There were instances of employees tweeting about their access to company IT systems being blocked, leading to immediate fears of being laid off. The sentiment was captured by an employee stating, "At the end of this nightmare, I better get a cash prize," reflecting a mix of resignation and hope for a beneficial outcome.
In response to the mass layoffs, Twitter employees launched a class-action lawsuit. The lawsuit alleges that Twitter violated federal and California law by failing to provide the legally required 60 days' notice for mass layoffs. Filed as Cornet v. Twitter Inc. in the United States District Court, Northern District of California, the suit also sought a court order to prevent Twitter from compelling fired employees to sign severance paperwork without first informing them about the pending legal action. The attorney representing the employees emphasized the goal of ensuring employees were aware of their rights and had an avenue for recourse.
Musk’s initial actions as Twitter’s owner were marked by immediate and drastic changes beyond the broad layoffs. He promptly fired several senior executives, including CEO Parag Agrawal and top finance and legal executives. Leaders of the company’s advertising, marketing, and human resources divisions were also among the early casualties. Internally, Musk reportedly instructed teams to identify and achieve up to $1 billion in yearly infrastructure cost savings. This period was characterized by a chaotic environment, with two company-wide meetings scheduled and then abruptly canceled. Employees noted that they were often left to gather information from media reports, private messaging services, and public message boards, further highlighting the breakdown in internal communication. This profound upheaval significantly altered Twitter's once-renowned open workplace culture, which many employees had previously praised.
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