Labor & Employment Law Daily Wrap Up, LITIGATION NEWS, TRENDS—Laid-off Twitter workers sue over severance, (May 5, 2025)

By Brandi O. Brown, J.D.

After the “world’s richest man” bought Twitter and laid off 80 percent of its employees, they allege, they did not receive the severance that they had been promised under the pre-acquisition policy.

According to a lawsuit filed by former Twitter employees, in which they allege claims of breach of contract and promissory estoppel, they had been promised prior to the purchase of Twitter by Elon Musk that, should they lose their jobs after the company was sold, they would be entitled to severance pay. However, they allege, after the purchase, Twitter reneged on this promise and did not pay the promised severance.

Promised same severance. The allege that after it was announced in April 2022 that Elon Musk would be purchasing Twitter, employees raised concerns about layoffs. “In order to assuage employees’ concerns and try to prevent them from leaving Twitter en masse to work at other companies,” they allege, “Twitter made various promises to employees,” including that for one year after acquisition, Twitter “would maintain the same wages and benefits for employees, including severance benefits, in the event the employees lost their jobs after the acquisition.” This was allegedly communicated directly to employees “orally (including at periodic ‘all-hands’ meetings and other meetings with management), as well as in writing by Twitter’s management.” They also received a Frequently Asked Questions document that made the promise that severance pay would remain at least as favorable as it was before the acquisition was communicated to them.

Layoffs and an email. Nevertheless, they allege, after the purchase happened, Twitter openly reneged on this promise and Musk began a mass layoff. After the first major layoff, Musk sent an email giving an ultimatum to those remaining and offering three months of severance for those who elected to leave by not responding to the email. “More than 1,100 employees did not click ‘yes’ in response to this email and were notified the next day that their employment would end two months later.”

Lower severance. The severance offered, however, was far less than what had been provided for by Twitter. They allege that they “reasonably relied to their detriment on” Twitter’s promise about severance.

The lawsuit was filed in the District of Massachusetts; the case is No. 1:25-cv-11207-PBS.

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