According to a recent New York Times report, Twitter’s new CEO Elon Musk intends to fire staff members before November 1 in order to dodge stock grants that are due on that day. Musk responded to the report by claiming that it is untrue in a tweet. Musk replied “This is false” in response to a question about the job losses from a Twitter user.
The layoffs would occur before November 1, when workers were supposed to get stock awards as part of their remuneration, according to a report last week in The New York Times. Musk reportedly ordered job cuts across the corporation, with some teams to be reduced more than others.
After completing a high-profile $44 billion buyout of the social media platform on Thursday, Elon Musk has already fired Twitter Chief Executive Parag Agrawal, Chief Financial Officer Ned Segal, and Legal Affairs and Policy Chief Vijaya Gadde, according to people familiar with the situdation.
He had claimed that they had misled him and Twitter’s investors over the prevalence of fraudulent accounts on the site.
The executives had the potential to receive parting compensation totaling almost $122 million, according to research company Equilar. According to the sources, Parag Agrawal, Ned Segal, and Vijaya Gadde will get severance payments and payouts for previously granted equity awards totaling more than $100 million.
The Information alleged that Elon Musk fired four top Twitter executives, including Agrawal and Segal, “for reason,” citing unnamed persons with knowledge of the situation, apparently in an effort to dodge severance compensation and unvested stock awards.
LightShed analyst Rich Greenfield said in a tweet on Saturday that Musk removed top Twitter executives “for cause,” delaying the vesting of their unvested stock as part of a shift of ownership.
According to Courtney Yu, director of research at Equilar, the ousted executives “should be collecting these (severance) payouts unless Elon Musk had cause for termination, with cause in these circumstances typically being that they broke the law or violated company policy,” she told on Friday.
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