Elon Musk’s New Headache: Severance Pay For Laid Off Twitter Workers

Twitter Inc. employees who were laid off shortly after Elon Musk took over are still awaiting details of their severance packages months after being let go, leading to further legal trouble for the new owner.

Musk laid off roughly 50% of Twitter’s more than 7,000 employees on Nov. 4, just a week after taking control of the company. Almost 1,000 of those who were terminated lived in California, according to documents filed with the state. Those workers were required under state and federal law to keep receiving regular paychecks over the past two months.

But that 60-day period ended on Wednesday, the official termination date for California employees. Employees have still not heard any details about additional severance, or continuation of health coverage, known as COBRA, according to three laid-off workers.

Musk tweeted at the time that everyone “was offered 3 months of severance.”

Since acquiring the social media platform for $44 billion, the billionaire has scrambled to cut costs, warning that the company may face bankruptcy. Earlier this week he eliminated other employee benefits, including commuter benefits and meal allowances, according to Platformer.

Twitter faces multiple suits over unpaid bills, including for private chartered plane flights, software services and rent at one of its San Francisco offices.

Lawyer Shannon Liss-Riordan said hundreds of Twitter workers she represents have now had their last day at the company and have received no severance notice or