Twitter workers file a class action lawsuit against the company in San Francisco for executing mass layoffs without at least 60 days notice, per the WARN Act

Twitter Inc. was sued over Elon Musk's plan to eliminate about 3,700 jobs at the social-media platform — half of its workforce …

Bloomberg 2022-11-04 Josh Eidelson

Context & Ripple Effects

Twitter’s workforce plans had shifted rapidly: an internal memo said companywide cuts were not planned or confirmable, followed by reporting of a planned 25% workforce reduction. The lawsuit puts the execution of the broader reported cuts, rather than the transaction itself, at the center of the dispute.

The case also begins a longer employment-law track at Twitter/X: later coverage records severance claims being sent to individual arbitration and a separate age-bias class action proceeding against X.

First-order effects

Twitter must defend allegations that its layoffs failed to meet WARN Act notice requirements, while affected workers seek to pursue claims collectively in San Francisco.
The planned elimination of roughly 3,700 roles leaves teams across the platform facing an immediate reduction in staffing alongside the legal challenge.

Second-order effects

The gap between the earlier reported 25% plan and the roughly half-workforce reduction makes the company’s layoff communications and notice process a focal point for employees’ claims.
Twitter’s later push to route severance disputes into individual arbitration shows how the mass-layoff fight can move from one collective case into many worker-by-worker proceedings.

Third-order effects

The related cases point to post-acquisition workforce reductions generating multiple legal tracks—notice, severance, and discrimination—rather than a single dispute over the layoffs.
If courts continue to enforce individual arbitration for severance while allowing distinct discrimination classes to proceed, former Twitter/X workers’ ability to litigate collectively will depend heavily on the type of claim and governing agreement.

The trend: Large technology-company layoffs are increasingly followed by segmented employment litigation, with arbitration terms shaping which worker claims can remain collective.

Discussion

@lisabloom Lisa Bloom on x
Hey Twitter employees getting laid off tomorrow! IMPORTANT INFO from a CA employment attorney (me): CA's “WARN” law requires Twitter to give you 60 days notice of a massive layoff. A layoff of 50+ employees within a 30 day period qualifies. I know you didn't get that notice.
@lmanul @lmanul on x
Was not planning on doing anything like this initially... But... Look Ma I'm suing Twitter. https://twitter.com/...
@josheidelson Josh Eidelson on x
Scoop: Twitter was just sued in a proposed class action for conducting a mass layoff without the required 60 day notice https://www.bloomberg.com/...
@nickstatt Nick Statt on x
The former Twitter employee who filed the proposed class action lawsuit for violations of California's WARN Act personally delivered this incredible cartoon to Elon. https://twitter.com/...
@docischief Eddie Munchster on x
Twitter in a nutshell https://twitter.com/...
@jesselehrich Jesse Lehrich on x
so if Elon is fined $500/day x 60 days x 3500 employees, that's $105M he's liable for backpay under both CA &US law; at $120K salary = $140M now advertisers are fleeing; they drove 90% of TW's $5B annual revenue if all ~400K verified users paid $8/mo... that's only $38M/yr 🤔 http…
@elizabeth_joh Elizabeth Joh on x
Twitter lawsuit filed: “The lawsuit asks the court to issue an order requiring Twitter to obey the WARN Act, and restricting the company from soliciting employees to sign documents that could give up their right to participate in litigation” https://www.bloomberg.com/...
@owillis Oliver Willis on x
I'm not particularly fond of Twitter the company but the dumb billionaire has sure made me more sympathetic to their employees as he performatively fires them for right wing praise
@alexhern @alexhern on x
It's going to be quite interesting watching Musk's management style interact with non-American employment laws. I remember when Buzzfeed tried to close its French office and a judge just said “no, actually” https://digiday.com/...
@tomcoates Tom Coates on x
This was quick. Spread the word to Twitter employees if you can. Not sure 100% what it means, but it may stall the current proceedings. https://www.bloomberg.com/...
@lisabloom Lisa Bloom on x
Employees laid off in violation of the WARN Act receive back pay at the employee's final rate or 3 year average of compensation, whichever is higher. Twitter would also be liable for workers' medical expenses that would have been covered under an employee benefit plan.
@evan_gocats Evan L on x
This seems frivolous. Mass layoffs in WARN states occur without notice regularly. They just keep you on the payroll and pay you not to work for however long they're required. I feel horrendous for the employees. Getting laid off is among the worst things to ever go through https:…
@drmistercody Cody Johnston on x
Remembering a short time ago when Elon said that he was voting Republican because the Democrats are the party of unions and class action lawyers, whereas Republicans are the party of corporate evil and religious zealotry. https://twitter.com/...
@amasna @amasna on x
Exactly what @lisabloom just said. Wonder if Musk and his circle realized this before pulling the trigger or they just don't care and will find a shitty workaround like he tends to do. https://twitter.com/...
@bizballmaury Maury Brown on x
I'm sure @elonmusk is aware of this. It will cost him a small fortune which is not much to him. He's really in “I don't give a <expletive>” mode. The law in CA was designed to prevent catastrophic actions that he's about to do. Very important thread 👇🏻 https://twitter.com/...
@davetroy Dave Troy on x
Going from “ongoing business concern” to “global information warfare apparatus” is going to necessarily be a rocky transition. Don't want pesky employees getting in the way of “the event.” https://twitter.com/...
@rmac18 @rmac18 on x
I believe keeping laid off folks on payroll for 2-3 months past today will potentially alleviate some concerns from Musk/Twitter's side regarding the WARN Act, but we'll see what happens as people get more details in the coming days. As with all things Musk, anything can happen.
@muellershewrote @muellershewrote on x
Clear violation of the WARN act. https://twitter.com/...
@josheidelson Josh Eidelson on x
“We will now see if he is going to continue to thumb his nose at the laws of this country that protect employees,” the plaintiffs' lawyer Shannon Liss-Riordan says of @ElonMusk. “It appears that he's repeating the same playbook of what he did at Tesla.” https://www.bloomberg.com/…
@karaswisher Kara Swisher on x
As expected @LisaBloom has entered the room. (WARN is a thing, for those who will try to say it is not — have covered this layoff aspect before many times and it can get thorny fast for companies) https://twitter.com/...

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