Sacked X employees in Africa finally get their severances after a year of being laid off

In a long-awaited resolution, X, formerly known as Twitter, has reached a settlement with the staff it terminated from its African headquarters over a year ago, as per a report by the BBC.

The majority of these employees, based in Accra, Ghana, were abruptly dismissed in November 2022, despite having only recently joined the company. Threats of legal action loomed as the terminated staff accused X of reneging on promised redundancy payments. While the company has remained silent on the matter, it had previously claimed to have compensated former employees in full.

Elon Musk, who assumed control of X in 2022, instigated a widespread downsizing effort, resulting in the dismissal of over 6,000 employees globally. Musk cited daily losses exceeding $4 million as the rationale behind this move. The African contingent, comprising fewer than 20 individuals, had recently relocated to X’s new office in Accra following an extended period of remote work due to the COVID-19 pandemic.

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Agency Seven Seven, the legal representative of the terminated staff, confirmed the successful negotiation of redundancy settlements and repatriation expenses for foreign employees. However, the exact amount of compensation remains undisclosed.

Carla Olympio from Agency Seven Seven expressed the relief of the staff at finally receiving their dues, allowing them to move forward from the ordeal.

Last year, affected employees spoke out about the adverse impact of X’s actions on their mental health and financial well-being. They recounted being promised an additional month of pay upon termination, only to find themselves immediately locked out of their accounts with no further salary disbursements.

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The protracted battle for compensation left many employees, including those who had relocated from neighbouring countries like Nigeria, stranded in Ghana alongside their families.

In a rare interview last April, Musk disclosed that X’s workforce had been reduced to 1,500 employees from nearly 8,000 prior to his acquisition of the company. Despite Musk’s public assertion that laid-off employees were entitled to three months’ severance pay, the African office staff refuted receiving such compensation.

Negotiations between X and the terminated African staff reportedly commenced following media coverage of the situation.

This settlement follows a series of legal challenges for X, including a lawsuit filed by former employees in a California court alleging the company’s failure to honour promised severance packages amounting to at least $500 million.