IN a notable turn of events, X, previously known as Twitter, has reached a settlement with its former employees at the African headquarters located in Accra, Ghana. This resolution brings an end to a prolonged dispute stemming from the unexpected termination of the workforce in November 2022.
The dispute primarily revolved around the promised redundancy payments to the affected staff, most of whom had only recently joined the social media platform. Despite initial assurances, the former employees found themselves in a legal battle with X over the fulfilment of their severance packages.
Confirmation of the settlement came from Seven Seven, the agency representing the sacked employees. Through legal representation, the affected individuals secured a redundancy settlement along with repatriation expenses for foreign staff, providing closure to a period marked by uncertainty and financial strain.
The workforce in Africa, comprising fewer than 20 individuals, had relocated to X’s new office in Accra before facing termination. This relocation followed a period of remote work prompted by challenges posed by the Covid-19 pandemic.
Carla Olympio from Seven Seven expressed the satisfaction of the former employees, emphasising their relief at finally receiving their due settlement. This resolution signifies the end of a contentious battle for compensation, allowing the affected individuals to focus on the future.
The restructuring at X occurred under the leadership of Elon Musk, who assumed control of the company in 2022. The global staff reduction, affecting over 6,000 employees, was attributed to financial difficulties, with Musk citing daily losses of more than $4 million.
Despite Musk’s claim that laid-off employees received three months’ severance pay, the African-based staff contested this assertion, stating they did not receive the promised compensation.
This settlement in Ghana follows a lawsuit filed against X last year by ex-employees in a California court, accusing the company of withholding at least $500 million in promised severance packages.
The resolution in Ghana sets a precedent that may lead to similar outcomes in other regions where former X employees are pursuing their rightful compensation, underscoring the broader implications of workplace disputes in the tech industry.