Elon Musk previously prevailed in a similar class-action lawsuit filed by Tesla employees, describing the case as “trivial.”

Employees at Twitter are filing a class-action lawsuit against the new Twitter CEO, Elon Musk, as the firm begins major layoffs.

Multiple sources claim that Musk began mass layoffs at Twitter on November 4, which resulted in a reduction of 7,500 employees. Just a few days after purchasing Twitter for $44 billion on October 27, the CEO was rumored to fire up to 3,500 employees, or up to 50% of the company.

Employees of Twitter filed a class action lawsuit against Musk in San Francisco federal court as a result of the layoffs, according to Bloomberg. The lawsuit claims that by terminating employees without providing adequate notice, Twitter is breaking both federal and Californian regulations.

The federal Worker Adjustment and Retraining Notification Act, which prohibits big businesses from implementing mass layoffs without at least 60 days’ notice, is particularly mentioned in the action. The rule, which is applicable to all California firms with more than 75 employees, has been utterly disregarded, according to renowned civil rights lawyer Lisa Bloom.

All Twitter employees should be aware of their rights, according to Shannon Liss-Riordan, the lawyer who brought the class-action lawsuit on Nov. 3. The lawyer stated that the workers “should not sign away their rights and that they have a route for pursuing their rights.”

Liss-Riordan is well-known for suing Musk’s electric vehicle company Tesla in June 2022 over comparable allegations, around the time Musk reduced its employees by around 10%. Musk reportedly called the Tesla lawsuit “trivial,” but Tesla ultimately prevailed in closed-door arbitration as opposed to in open court.

According to Liss-Riordan, “it looks like he is using the same playbook that he used at Tesla.”

In line with Musk’s takeover of Twitter, there are a number of changes happening, including paid account verification in addition to the layoffs. Twitter will reportedly start charging for Twitter verification on November 7th.

Despite the continued slump in the IT sector, mass layoffs are not limited to Twitter; numerous businesses throughout the world have been making employee reductions. For months, tech behemoths like Meta, Amazon, Microsoft, and Google have either stopped hiring or reduced their workforce.

The impact of the ongoing bear crypto market has been increased by the impact on numerous crypto enterprises. Cities like San Francisco, Dubai, and New York are expected to have the highest percentage of crypto layoffs in 2022, according to research provided by cryptocurrency analytics source CoinGecko.

<strong>Elon Musk is facing a class-action lawsuit over the mass layoffs at Twitter.</strong>
Elon Musk is facing a class-action lawsuit over the mass layoffs at Twitter. 2

The announcement follows the delisting of Twitter from the New York Stock Exchange on October 28 as the social media behemoth transitioned to a private corporation. Twitter shares were delisted from other crypto-friendly trading platforms including eToro and Robinhood as well. Since Musk’s takeover, Twitter may have lost over a million users, or 877,000 accounts, according to estimates from the research firm Bot Sentinel.

Binance, a significant international cryptocurrency exchange, contributed $500 million to acquire ownership at Twitter. The investment has a high potential for monetization, free speech in the cryptocurrency ecosystem, and the chance to one day “help bring Twitter into Web3,” according to Binance CEO Changpeng Zhao.

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