Twitter employees received layoff payments today that fell short of expectations following Elon Musk’s acquisition, according to multiple sources familiar with the matter, after further delays this week, with some former Twitter employees announcing their official severance Saturday.
Compensation is much less than expected, and emails are landing in spam folders. After Elon Musk took control of the social media giant in late October, nearly three-quarters of the company’s 7,500 employees were let go in a series of cutbacks.
Elon Musk tweeted that those affected would receive 3 months of severance compensation. Previous Twitter management promised to offer at least two months’ severance pay as well as pro-rata performance bonuses, extended visa support, funding for continued healthcare, and the cash value of equity to vest within three months.
However, as we reported earlier, the agreements sent out today put one month’s basic pay in the US as severance. Those leaving in November have been placed on payroll and paid their regular wages for the last 60 days due to requirements of the federal WARN Act, which mandates that companies give 60 days’ notice before mass layoffs.
Although these employees had been banned from the company’s internal systems since November, they were formally let go on January 4, according to the law. Employees will not receive their proportionate performance bonuses, according to Twitter severance materials reviewed by Fortune. A source said some employees received COBRA, which funds for health care continuity.
I mean I expected him to fuck us,’ one activist wrote to Fortune. This is approximately 1/3 of the outstanding amount contracted by them based on their purchase agreement. However, employees were given two months’ pay during the “non-working” period to comply with the federal WARN Act.
The Los Angeles Times reported that an attorney for two class-action lawsuits against Twitter claimed that such money should not be included in the actual severance paid to employees. Not all affected employees received their stipulations, multiple sources told Fortune. In lieu of in-house HR services, the contracts are being routed by a third-party service provider called CPT Group.
The sources say it is not yet clear why only some people have received their compromises, but many are finding the compromises in their spam folders. The sources also identified some hurdles in the process. Those who received their contracts today were offered a specific login and directed to visit a website, but that location was set up about five hours before the severance agreement was due to expire.
It didn’t name Twitter, according to a source familiar with the matter, leading many to assume it was former employees who had the option of signing in or opting out of the agreement after logging in and viewing their severance agreement. , The Web site is accompanied by a frequently asked questions Web page, which states that affected employees can expect payment within 45 days of their signed settlement.
A downloadable additional FAQs document confirms that employees will not receive efficiency bonus payments, which were set to be paid in March, and the agreement lists any negotiated or severance amounts that may not be due. Fortune previously reported that more than 5,500 Twitter employees were set to receive official severance agreements.