Did Elon Musk break law with layoffs? The '3-month severance' that Twitter-moaners aren't talking about
MANHATTAN, NEW YORK CITY: Elon Musk has justified his decision to fire half of Twitter's workforce, saying he had "no choice" because the firm was losing $4 million per day, adding that the severance arrangements were fair. On October 27, Musk, 51, assumed control of Twitter with a promise to turn it profitable. He later acknowledged that his $44 billion acquisition undervalued the digital company.
To comply with California's employment notice regulations, his company had to notify 3,700 employees on November 4 that they were being let off and would not receive their final paychecks until the end of January or February. “Regarding Twitter's reduction in force, unfortunately, there is no choice when the company is losing over $4M/day,” he said in an interview with Ron Baron. “Everyone exited was offered 3 months of severance, which is 50% more than legally required.” Musk has a fight on his hands to recoup his investment, but on November 4 he insisted that it might turn into one of the most valuable firms in the world.
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