Twitter Sued Again Over Severance Pay, Lawsuit Claims Company Owes at Least $500 Million to Ex-Workers

The lawsuit also alleges that the company targeted older workers for layoffs.

Advertisement
By Reuters | Updated: 19 July 2023 16:43 IST
Highlights
  • The lawsuit was filed by former Twitter senior engineer Chris Woodfield
  • Twitter laid off more than half of its workforce when Elon Musk took over
  • A similar lawsuit was filed last week in California federal court

Twitter allegedly promised workers two months' salary, other payouts if they were laid off

Photo Credit: Reuters

Twitter on Tuesday was hit with the second lawsuit this month to claim that it owes at least $500 million (roughly Rs. 4,105 crore) in severance pay to ex-workers, the latest in a series of cases arising from Elon Musk's acquisition of the social media company.

The proposed class action filed in Delaware federal court by former Twitter senior engineer Chris Woodfield also alleges that the company targeted older workers for layoffs, a claim that has not been made in the other pending cases.

Advertisement

Woodfield, who worked for Twitter out of Seattle, says the company repeatedly told employees that they would receive two months' salary and other payouts if they were laid off, but that he and other workers have not received the money.

Twitter laid off more than half of its workforce as a cost-cutting measure after Musk acquired the company last October.

Twitter no longer has a media relations department and the company responded to an email seeking comment with an automatic response containing a poop emoji. The company has said in response to other lawsuits that laid-off workers have been paid in full.

A similar lawsuit was filed last week in California federal court claiming Twitter owes ex-employees more than $500 million in severance.

Advertisement

Twitter has not responded to that lawsuit, which claims it violated a federal law regulating employee benefit plans by failing to abide by the terms of a severance plan established before Musk acquired the company.

Woodfield's lawsuit accuses the company of breach of contract and fraud. Woodfield also claims that Twitter targeted him to be laid off because he is an "older worker," though the complaint does not state his age.

Advertisement

According to the lawsuit, Woodfield signed an agreement to arbitrate work-related legal disputes that requires Twitter to pay the initial fees to allow individual cases to proceed. He says that he initiated an arbitration against Twitter earlier this year.

But Woodfield claims Twitter has refused to pay the fee in his case, blocking it from going forward. That claim was made by hundreds of ex-employees in a separate case earlier this year. Twitter has said those workers did not submit the necessary paperwork.

Advertisement

Twitter has also been accused in several separate lawsuits of disproportionately laying off women and workers with disabilities, failing to give advance notice of layoffs, and not paying promised bonuses to its remaining employees. The company has denied those claims.

© Thomson Reuters 2023


Will the Nothing Phone 2 serve as the successor to the Phone 1, or will the two co-exist? We discuss the company's recently launched handset and more on the latest episode of Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Twitter, Elon Musk
Advertisement

Related Stories

Popular Mobile Brands
  1. Best Camera Phones Under Rs. 30,000 for Content Creators in India
  2. Everything We Know About the Nothing Phone 4b
  1. Amazon Prime Day 2026 Laptop Deals: Best Discounts on HP, Asus, Lenovo, Dell, Acer Models
  2. Best Camera Phones Under Rs. 30,000 for Content Creators in India: Motorola Edge 70 Fusion, Galaxy F56, More
  3. Boat Stone 900 Launched in India With Up to 80W Sound Output, Up to 15 Hours Audio Playback: Price, Features
  4. Cyberpunk 2077 Has Sold 40 Million Copies, CD Projekt Red Confirms
  5. Nothing Phone 1 Receives Final Software Update With Latest Security Patches, Bug Fixes and Improvements
  6. Nokia 235 4G (2026), 215 4G (2026) Launched Alongside Nokia 210 4G, and 200 4G With AI Assistant Button
  7. Samsung Galaxy S27 Ultra Battery Details Leaked; Could Top iPhone 18 Pro Max's Battery Capacity
  8. OnePlus Ace 7 Series Tipped to Feature 185Hz Display, 9,000mAh Battery
  9. WhatsApp Rolls Out Primary Device Support on iPad, Tests New Setup Screen for Android Tablets: Report
  10. Government Directs App Stores to Remove Malicious Apps Used to Disrupt E-Rickshaw Operations: Report
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.