X Corp Ends Lawsuit For Former Twitter Employees By Paying IDR 8.1 Trillion

JAKARTA X Corp, a company previously known as Twitter, has reached an agreement with former employees who worked in the Twitter era. The company agreed to provide severance pay.

The company, which is now owned by Elon Musk, will provide severance pay of 500 million US dollars (Rp8.1 trillion) to employees they fired in the Twitter era. The agreement that has been agreed upon by both parties is recorded in court documents.

To resolve the issue between X Corp and former Twitter employees, the two parties filed a postponement of the next hearing to the US appeals court. The trial was postponed so that X Corp could settle payments to its former employees.

X Corp faced this lawsuit several years ago, precisely after Musk bought Twitter. The billionaire made a massive overhaul, one of which was to lay off about 6,000 employees in 2022.

Several employees who were fired filed a lawsuit over their termination of employment and severance pay rights. In the lawsuit, X is known to have failed to fulfill his severance pay obligations.

Based on the 2019 severance pay plan, employees who are fired should receive two months of basic salary and an additional one week of salary for each year of service. Senior employees are entitled to six months of basic salary.

However, employees are known to only provide severance pay for a maximum of one month. Many of the employees who were fired did not even accept anything. This mass dismissal was carried out as a cost-saving step after Musk's acquisition.

Initially, this lawsuit was rejected by a federal judge in San Francisco. However, the employees filed an appeal to the 9th US Court of Appeal and the lawsuit was accepted. The verbal hearing is scheduled to be held on September 17.