X, previously known as Twitter, has at last compensated the employees it terminated at its African headquarters over a year after their dismissal, according to the agency representing them.
Most of the affected employees, who were based in Accra, Ghana, had only recently begun their roles when they were let go by the social media platform X in November 2022.
They had threatened legal action against X for failing to fulfill the redundancy payments they were assured of.
The company has chosen not to issue a statement regarding this matter.
Previously, X stated that it had settled all outstanding payments with former employees.
Under Elon Musk’s leadership, who assumed control of the company in 2022, a significant global downsizing took place, resulting in the dismissal of over 6,000 employees. Musk cited daily losses exceeding $4 million (£3.5 million) as a primary reason for the layoffs.
The African employees, numbering fewer than 20, had recently relocated to X’s new office in Accra after nearly eight months of remote work during the Covid-19 pandemic.
Agency Seven Seven, responsible for providing legal representation to the employees, confirmed their success in securing redundancy packages and repatriation expenses for foreign staff. However, the exact amount of the settlement was not disclosed.
Carla Olympio from Agency Seven Seven informed the BBC that the employees are relieved to have finally received their entitlements and can now focus on moving forward.
Last year, the terminated employees told the BBC about the detrimental effects of their treatment by X on their mental health and finances.
“It’s challenging when the world’s wealthiest individual owes you money and resolution,” remarked one of the affected individuals.
Initially, the terminated employees were assured they would receive one month’s salary despite their contracts being terminated. However, they found themselves locked out of their emails immediately and never received the promised payment. Subsequently, they found themselves embroiled in a frustrating battle for compensation. Among the affected employees were individuals who had relocated from neighboring countries like Nigeria, leaving them and their families stranded in Ghana due to the sudden termination of their contracts.
In a rare interview last April, Mr. Musk disclosed to the BBC that the social media giant had reduced its workforce to 1,500 employees, down from the nearly 8,000 employed at the time of his acquisition of the company. Following the public disclosure of Mr. Musk’s significant staff reduction, he mentioned in a tweet that laid-off employees would receive three months’ severance pay. However, the Africa office staff claim they did not receive this compensation.
According to Agency Seven Seven, negotiations with the dismissed Africa staff only commenced after the BBC covered the story. X faced a lawsuit last year from former employees in a California court, alleging the company’s failure to pay promised severance packages totaling at least $500 million.
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