Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Business

Elon Musk accused of owing $500m in Twitter severance

by July 13, 2023
July 13, 2023
Elon Musk accused of owing $500m in Twitter severance

A former human resources boss at Twitter has accused the company of failing to pay roughly $500m (£385m) in severance pay owed to former staff of the company.

Courtney McMillian, who was the social media site’s former “head of total rewards”, made the claim in a class-action lawsuit.

The complaint says Twitter owner Elon Musk knew about the severance plan before he sacked thousands of staff.

But it says he balked at the “expense”.

It is the latest of multiple lawsuits filed against the company over the mass firings that followed Mr Musk’s purchase of Twitter for $44bn (£34bn) last year.

The layoffs ultimately affected roughly 6,000 people, according to the lawsuit.

Under Twitter’s severance plan, staff were due to receive a minimum of two months base salary in severance and a cash contribution toward health insurance, among other benefits, according to the complaint filed in federal court in San Francisco.

Those with more senior roles, including Ms McMillian, were due six months base salary in severance pay, plus one week for each full year of experience, it says.

But staff received “at most” three months of pay after they were sacked. That included one month of severance, as well as two months worth of pay to comply with a US law aimed at providing workers with notice of firings, according to the complaint.

That was a “fraction” of the $500m to which employees were entitled, it says.

Twitter, which no longer has a public relations department, did not comment.

Mr Musk said in November following a round of mass layoffs that staff would receive three months worth of pay, “50% more than legally required”.

The complaint accused Mr Musk of misleading employees about whether the company would honour the plan, leading some to remain at the firm for longer than they would have otherwise.

“Musk initially represented to employees that under his leadership Twitter would continue to abide by the severance plan,” said Kate Mueting, the lawyer from Sanford Heisler Sharp who is representing Ms McMillian.

“He apparently made these promises knowing that they were necessary to prevent mass resignations that would have threatened the viability of the merger and the vitality of Twitter itself,” she added.

Read more:
Elon Musk accused of owing $500m in Twitter severance

0
FacebookTwitterGoogle +Pinterest
previous post
Foolish not to review IR35’ ahead of General Election, says MP
next post
Summer economy worth £3.15bn as Brits continue their love affair with staycations

You may also like

Soaring inflation forces Brits to tighten belts on...

June 23, 2023

Teachers vote to strike for seven days in...

January 17, 2023

Only 1 in 200 fraud cases lead to...

November 15, 2022

Hundreds of Married Women Could Receive State Pension...

August 9, 2023

Three Viable Alternative Business Financing Methods

September 24, 2024

Top Ways to Leverage SEO for Driving Business...

August 31, 2023

Leveragesix.com Review | How LeverageSix Shapes a More...

December 8, 2023

Drop in consumers buying electric cars as new...

October 5, 2023

Trump poised to ease impact of car tariffs...

April 29, 2025

BT Scraps Digital Landline Switch Deadline Amid Vulnerability...

May 21, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Claim Trump nixed top Musk ally from NASA post over Dem donations belied by ex-Dems on team

      June 6, 2025
    • House Budget chairman explains why there’s no ‘pork’ in Trump tax bill after Elon Musk attacks

      June 6, 2025
    • Silver’s Surge is No Fluke—Here’s the Strange Ratio Driving It

      June 6, 2025
    • Friday Feature: Incubate Debate

      June 6, 2025
    • Risch urges ‘top to bottom’ USAID spending review after waste, fraud exposed

      June 6, 2025
    • Universities in Libertarian Land

      June 6, 2025

    Categories

    • Business (8,149)
    • Investing (2,013)
    • Politics (15,547)
    • Stocks (3,131)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved