Nov 4, 2022 - Economy

Twitter sued over Elon Musk's layoff plan

: Twitter headquarters is seen in San Francisco, California.

Twitter's headquarters in San Francisco. Photo: Tayfun Coskun/Anadolu Agency

Twitter was sued on Thursday over Elon Musk's plan to cut as many as 3,700 jobs at the company.

Driving the news: The class-action lawsuit, filed by five current or former employees, alleges that Twitter violated federal and state laws that require at least 60-day notice of a mass layoff.

Zoom in: One of the plaintiffs was told his firing was effective immediately on Tuesday, according to the lawsuit. Three others say they have been locked out of their Twitter accounts since Thursday without a formal layoff notice.

  • "Plaintiffs are very concerned that Twitter will continue these layoffs without providing the requisite notice," the lawsuit reads.
  • The plaintiffs are asking the court to declare that Twitter is violating both laws and stop the company from soliciting employees to sign separation agreements that would prevent them from joining the lawsuit.

State of play: Twitter told employees on Thursday that they should expect to see an email in their inbox Friday about whether or not they’d been fired, according to the Washington Post and other outlets.

  • Sources confirmed to Axios that the layoff plan would be announced to employees on Friday, who would learn their own fates in follow-up emails.

The big picture: The layoffs come at the end of Musk's chaotic first week at the helm of Twitter.

  • Recent reports suggest as many as half of the company's employees could lose their jobs.
  • Musk has yet to speak directly to all employees, postponing several all-hands meetings.
  • Under Musk, Twitter is also planning to require the remaining staffers to return to the office full-time.

Be smart: Musk is managing Twitter with a Trump-style playbook right now, changing his mind on massive decisions and keeping his company in a state of uncertainty, Axios' Scott Rosenberg writes.

Go deeper