What’s going on:
In a move to reduce costs, Elon Musk’s purchase of the social media platform Twitter resulted in the laying off of nearly 3,700 staff members (nearly half of the company’s employees) back in early November. Subsequently, hundreds more chose to resign.
On Tuesday, Twitter was served a lawsuit for allegedly letting go of contracted workers without proper notification following Elon Musk’s takeover of the company, which formed part of the company’s drastic job cutbacks.
In San Francisco federal court, a class action was submitted claiming that Twitter, in November, unlawfully terminated staff employed by TEKsystems without the necessary two-month notification mandated by the U.S. and California statutes, according to Reuters.
Why it matters:
Five more cases are currently pending in the same court, accusing Twitter of breaking those laws, of targeting female personnel for layoffs, and discriminating against disabled personnel.
Despite all this, Twitter maintains that they have done nothing wrong.
How it’ll impact the future:
Layoffs, especially in the tech sector, have been plentiful as of late. But not all companies conducting these layoffs are doing them correctly — according to the law. Companies should take heed in future to ensure they’re following the correct processes if they must conduct layoffs.