According to the Financial Times, British employees fired by Twitter after Elon Musk took the helm claim they were illegally dismissed, including unacceptable severance terms, in the latest labor-related challenge facing the billionaire.
London-based law firm Winckworth Sherwood sent a letter to Twitter on Jan. 10 accusing the social media platform of imposing “unlawful, unfair and wholly unacceptable treatment” on former British employees in a “sham redundancy process. The letter was sent to Twitter on January 10, accusing the social media platform of “unlawful, unfair and wholly unacceptable treatment” of former British employees in a “sham layoff process.
Winckworth filed the allegations against Twitter on behalf of 43 of the more than 180 British employees the company fired in mass layoffs in early November, just days after Elon Musk bought the platform for $44 billion.
The law firm warned that many plans to take the social media company to an employment tribunal if their complaints are not resolved, which could add to the company’s growing legal and regulatory woes.
Labor rights attorney Shannon Liss-Riordan said Twitter is already facing at least 200 legal complaints in the U.S. — in the form of arbitration claims and four class-action lawsuits from people affected by the layoffs.
The legal complaints come as Elon Musk is stepping up his cost-cutting efforts at Twitter, arguing that the company could face $3 billion a year in negative cash flow or even “bankruptcy” if he can’t get Twitter financially healthy.
However, the belt-tightening has raised concerns about Twitter’s compliance with local laws around the world, prompting some former employees to take legal action that could cost the company more if they succeed.