Twitter cut more than 950 California workers after Elon Musk took over, WARN post shows

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Elon Musk’s Twitter profile page can be seen on an Apple iPhone mobile phone.

Nurfoto | Nurfoto | Getty Images

After Elon Musk, the CEO of Tesla and SpaceX, took ownership of Twitter last week, the social networking giant began a sharp cut in its workforce. The cuts affected a total of 983 employees in the home state of California, according to three notification letters the company sent to regional authorities, obtained by CNBC.

The company’s new owner, CEO and sole director Musk, wrote in a tweet Friday afternoon: “As for the reduction of Twitter, unfortunately there is no choice when the company loses more than $4 million a day. Everyone who left got 3 months of resignation, which is 50% more than legally required.”

Twitter’s power cut extended beyond California, and CNBC was unable to immediately confirm whether Musk’s description is accurate. A loss of $4 million per day at the company would represent an annual loss of approximately $1.5 billion.

The federal Worker Adjustment and Retraining Notification (WARN) Act requires employers to provide advance notice, generally within 60 days, of mass layoffs or plant closures in California.

According to letters from Twitter, shared by the California Employment Development Department, Twitter notified the affected employees on Nov. 4. social media, including on Twitter itself.

This type of arrangement can serve as a “payment in lieu of notice” in California, depending on specific terms of employment. According to WARN reports, the permanent termination is expected to begin in January 2023.

In three different California WARN announcement letters, signed by Twitter’s Human Resources department, but without individual executives, the company wrote, “Engaged employees will receive all wages and other benefits to which they are entitled until the date of termination.”

According to the WARN notice, Twitter fired approximately 784 employees in San Francisco, including nine executive and senior officers or managers, 147 mid-level employees who typically reported directly to top executives, 592 other professionals and 36 sales and administrative support employees combined.

At the company’s satellite locations in Santa Monica, Twitter has laid off about 93 employees, including 17 middle-level officers and managers, 66 professionals and 10 combined sales and administrative support employees, the WARN post shows.

At an office in San Jose, Twitter fired about 106 employees, including an executive or senior officer or manager, 18 middle officers and managers, 85 professionals and two administrative support workers, according to the WARN notice.

Twitter was sued Thursday by former employees in a proposed class action filed by workers’ rights attorney Shannon Liss Riordan and others, who feared employees had not been properly notified, under federal and California law. that they would be terminated in the massive layoffs.

Shannon Liss-Riordan, an employee rights attorney representing the fired Twitter employees, did not immediately respond to a request for comment.



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