Ex-Twitter Employee Wins Severance Dispute Against Musk

Elon Musk has lost a legal battle regarding unpaid severance to a former Twitter employee laid off following his acquisition of the social media platform in 2022, according to a memo obtained by Bloomberg News. This decision marks a significant development in the ongoing disputes stemming from the mass layoffs that occurred after Musk took control of Twitter.

Background of the Dispute

The resolution of this dispute, which was handled through arbitration, comes nearly two years after Musk acquired Twitter for $44 billion and subsequently fired over half of its staff. This drastic move led to more than 2,000 complaints from former employees who claimed they were not compensated fairly. The recent victory in this arbitration case could set a precedent for the thousands of former employees who have filed similar grievances.

Arbitrator’s Decision

“The arbitrator awarded the full severance package to our client,” stated lawyer Shannon Liss-Riordan in the memo, which was shared by two former Twitter employees who chose to remain anonymous due to the confidential nature of the information. She expressed optimism about the outcome, stating, “We are excited about this development and hope it foreshadows more good news to come.”

Ongoing Legal Challenges

Liss-Riordan did not comment further or disclose the arbitrator’s written ruling following the private proceeding. In July, Musk and X Corp. — the new name for Twitter — successfully defeated a lawsuit claiming that over $500 million in severance pay was owed to approximately 6,000 laid-off employees under the federal Employee Retirement Income Security Act.

In the memo, Liss-Riordan stated that 15 cases have already gone through arbitration hearings. She expects more rulings in the coming months. She added, “We hope that if more rulings are favorable, Twitter/X will be willing to negotiate a settlement for everyone.”