- cross-posted to:
- technology@lemmy.world
- cross-posted to:
- technology@lemmy.world
Elon Musk’s alleged penchant for not paying bills is catching up with him. In the wake of numerous lawsuits claiming the world’s richest man failed to pay severance owed to many of the 6,000 employees he fired after acquiring Twitter. On Monday, CNBC reported that the tech company now known as X is facing some 2,200 arbitration cases filed by ex-employees, which come with $3.5 million in required fees—an amount that doesn’t even include the actual severance owed to those Musk let go.
In October, shortly after taking Twitter’s reins, Musk laid off more than half of its employees, promising most at least two months’ salary plus a week’s pay for every year they’d worked at the firm. Thousands claim that they haven’t received a single dime, and ex-employees have since filed several lawsuits seeking their promised benefits.
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You guys are failing to see that this was a simple misunderstanding.
Musk was told he needed to pay severance to all the ex employees, but he was confused why he was paying severance to “X employees” if they were still employed, so he simply didn’t.
It’s an easy mistake. Anyone could’ve done it.
Ah, the old Ravenous Bugblatter Beast of Traal gambit.
Elon Musk’s alleged penchant for not paying bills is catching up with him.
Citation required. It’s not having any effect on him personally, the businesses are the ones which are affected. And when you’re not depending on your businesses to eat and live, there are zero consequences.
They’re all his shitty decisions, but as usual, he doesn’t pay for it. The profits are privatised while the losses are socialised. And I’m pretty sick of the media counting eggs before they hatch, because they usually don’t hatch at all.
Elon Musk’s alleged penchant for not paying bills is catching up with him.
Citation required.
Not paying rent for Boulder office:
https://techcrunch.com/2023/06/14/twitter-is-being-evicted-from-its-boulder-office-over-unpaid-rent/Not paying rent for San Francisco office:
https://arstechnica.com/tech-policy/2023/01/twitters-landlord-sues-for-millions-in-unpaid-rent-at-firms-us-headquarters/Not paying consulting firm:
https://arstechnica.com/tech-policy/2023/01/twitter-hired-experts-for-case-against-musk-now-musk-wont-pay-them-lawsuit-says/Not paying interest on loan:
https://arstechnica.com/tech-policy/2023/01/looming-twitter-interest-payment-leaves-elon-musk-with-unpalatable-options/Yes, the business he bought (with not only his money) has been sued and evicted. The only time Musk has personally ever been on the hook was when he tried to wriggle out of buying said business, and the business sued him personally. Otherwise, he can walk away consequence-free from everything else.
Yes, the business he bought (with not only his money)
That’s literally part of the problem. He hadn’t paid interest on the loan he took out to buy Twitter.
But also, he was CEO when these things all happened. He is the one who made the decisions not to make payments toward rent on two of his offices, toward his loan, or toward his consulting firm. I’m not sure what sort of mental gymnastics you’re doing to say that he isn’t responsible for these things. Twitter wasn’t having those problems pre-Musk, and is only having these problems as a direct result of Musk’s decision-making. That’s kinda part of what being a CEO entails.
Not sure why one would ask for citations and then dismiss them.
They aren’t saying he pays his bills, they’re saying there are effectively no consequences for him personally every time he does it. He’s not the one footing the bill for these Xitter lawsuits, it’s his company.
He privately owns Twitter, so he can do whatever he wants with it.
The issue is that he took out billions of dollars in Tesla stock loans to cover the Twitter sale, so if Twitter fails and the people that gave him cash ask for the cash back: he has to hand over his collateral, which is largely his controlling stake in Tesla.
Yes, but he’s also the sole owner of the company. They went private after the acquisition, so there are no more shareholders. It’s his company now, so he is the one directly responsible for it at this point.
If you’re the sole owner of a taco truck and you crash into an orphanage with it, you are responsible, not the LLC you registered.
I think they meant citation required for the “is catching up with him” part.
If I lit your house on fire you wouldn’t spend much time arguing that it doesn’t hurt you directly, just your personal property
That would be a key difference between personal property and private property. Not that I own my own house.
Even if Musk was at personal risk of losing the entire amount of money Twitter cost, which he isn’t, it would have no effect on his ability to live or conduct business.
X just might mark the spot for treasure here
X is not gonna give it to ya
I haven’t yet seen an article where a reporter totals up the numbers and associated dollar amounts associated with Musk’s mismanagement. In terms of general classes - and I’m just going off the top of my head here - we’re looking at (including only the twitter related ones):
- Failure to pay agreed upon payouts for fired employees
- Age discriminatory termination lawsuits
- Violation of employment contracts re: return to work and other conditions
- Failure to pay rents and infrastructure fees
- Failure to moderate content according to legally required regulations
- Allocation of TSLA employees to work at Twitter, a different company with different shareholders, thus robbing Peter to pay Paul on investors’ dimes
There were also potential suits over mass terminations contrary to state and national laws, but I haven’t heard as much about those recently.
So was the rebranding of Twitter to X just so Elon could say “U fuckin’ wot m8? This company is X, and your employment contract is with Twitter, so it looks like you were never employed here.”?
This sounds like purposeful sabotage, but then again I’ve been saying that daily since Musk took over.
Smart. Flush money down the toilet trying to impersonate Trump by not paying your bills. Maybe he should run for president.
Thankfully he can’t.
Tell that to the Canadian, Ted Cruz.
As unfortunate as it is, he is still a natural citizen thanks to who his parents are.
I’m sure he wouldn’t mind publicly releasing his long form birth certificate?
Couldnt happen to a nicer dbag
he couldn’t care less, he’s worth 95 Billion more now than when he purchased Twitter, the cruelty is the point
Waiting like this was smart. Unfortunately.
Options:
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Stall as long as possible. Twitter makes a bunch of money. Have money to pay severances. All good.
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Twitter fails anyways. No money to pay anybody but had as long a runway as possible. Bankrupt and a financial guy nominated by a judge sorts it out.
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What’s that come out to, around? 4 weeks pay per employee?
Well, minimum 2 months per employee plus the 4 weeks. Let’s figure an average salary of $80k. 6000 employees with an average tenure of 4 years. Let’s go ahead and round that to 3 months salary. So he’s paying the equivalent of 1500 employee’s average salary. That works out to about $120m.
I think my salary estimate is low there, and I have no idea what the tenure of the employees would be. Either way, not a small sum for a company that’s barely treading water.
I am gyessing that engineers at Twitter were probably making around $150k per year, give or take.
80k/year*.25year*1500 = $30m, where does the 120m come from?
$80k/year*.25year*2200 = $44m in this case, though like you said your salary estimate is probably low
Literally the post:
… X is facing some 2,200 arbitration cases filed by ex-employees, which come with $3.5 million in required fees-an amount that doesn’t even include the actual severance owed to those Musk let go.
That didn’t answer the question
Considering that number isn’t the amount of severance pay, it kinda did.
They were asking about the severance pay though? Did you reply to the wrong comment?
The way the comments read, they were asking if the amount that was given ($3.5mm) was for severance. I am pointing out that it is not, that it’s for fees only.
That’s the penalties, not the amount owed to the employees.
Exactly.
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