X, formerly known as Twitter, has settled the severance payments for the staff it terminated at its African headquarters over a year ago, according to the agency representing them.
The majority of the affected employees, who were based in Accra, Ghana, had only recently joined the company when they were let go in November 2022. They had threatened legal action against X for not fulfilling the redundancy payments they were assured of.
X has not issued any statements regarding this matter. Previously, the company stated it had compensated former employees in full.
Under Elon Musk’s leadership, who assumed control of the company in 2022, a significant global workforce reduction occurred, resulting in the dismissal of over 6,000 employees. Musk cited daily losses exceeding $4 million as a reason for the cuts.
The African workforce, consisting of fewer than 20 individuals, had recently relocated to X’s new Accra office after nearly eight months of remote work during the Covid-19 pandemic.
Agency Seven Seven, the legal representative of the affected staff, confirmed they had successfully secured redundancy settlements and repatriation expenses for foreign employees, although they did not disclose the specific amount.
Carla Olympio from Agency Seven Seven stated, “They are very pleased to finally be able to get their due, put this behind them and look to the future,” in an interview with the BBC.
Former employees had previously expressed how their treatment by X had adversely impacted their mental well-being and finances.
Facing immediate dismissal after being assured one additional month of pay, staff found themselves locked out of their emails with no further salary payments. This led to a prolonged and frustrating battle for compensation.
Many affected employees had relocated from neighboring countries such as Nigeria, leaving them and their families stranded in Ghana due to the sudden contract terminations.
Elon Musk revealed in a rare interview last April that X’s workforce had decreased to 1,500 employees from nearly 8,000 at the time of his acquisition of the company.
Despite Musk’s public statement that laid-off employees were given three months’ severance pay, the African office staff claim they did not receive this compensation.
Negotiations between X and the terminated African staff only commenced after the story received coverage by the BBC, as stated by Agency Seven Seven.
Last year, X faced a lawsuit from ex-employees in a California court, alleging the company’s failure to honor promised severance packages totaling at least $500 million.
