"Twitter's Mass Layoffs in Africa Spark Claims of Neglect and Uncompensated Severance"

Former Twitter Employees in Ghana Left Without Severance Pay After Layoffs

Lack of Communication and Compensation

Former Twitter employees in Ghana, who were laid off in November, have not received severance pay and have had no contact with the company for three months, according to sources. As part of Elon Musk's cost-cutting efforts, Twitter fired most of its staff at its only office in Africa. Musk had justified the layoffs by stating that the company was losing over $4 million per day. Although Musk claimed that the employees were offered three months of severance, which exceeded legal requirements, it is unclear which office and jurisdiction he was referring to.

Violations of Ghanaian Employment Law

Under Ghanaian employment law, employees must be paid redundancy and given three months' notice before being made redundant. However, Twitter's workers in Accra were given less than a month. The former employees requested compensation in lieu of notice and emotional distress damages, but both were rejected by Twitter. The workers feel that they have been treated in bad faith by the company, as there was no attempt to negotiate a severance package until international news reported on the situation.

Lack of Response and Financial Difficulties

Despite accepting a watered-down severance offer in May, the employees have heard nothing from Twitter since then. Some expenses owed to them have also not been paid. The lack of communication and delayed payments have caused frustration among the former employees, who are struggling to find new jobs and support their families. They feel that the settlement they agreed to is not what was promised and that Twitter has neglected their well-being.

Twitter's Financial Challenges

Since Elon Musk's acquisition of Twitter, the company has experienced a significant decline in advertising revenue and negative cash flow. The competition from Meta's platform Threads has also added to Twitter's struggles. Scott Galloway, a marketing professor, compared Twitter to MySpace, stating that it is a social network lacking innovation and slowly being overshadowed by Meta. Although the reduction in workforce may have contributed to the decline in revenue, it is not the sole cause of Twitter's financial challenges.

Conclusion: Implications for New Businesses

The situation surrounding former Twitter employees in Ghana not receiving severance pay highlights important lessons and potential implications for new businesses that operate in Ghana. The lack of communication and compensation from Twitter raises concerns about the treatment of employees during layoffs and the importance of adhering to employment laws.

Firstly, this serves as a reminder for new businesses to prioritize open and transparent communication with their employees during times of organizational changes. Keeping employees informed about decisions and providing support, such as severance pay, can help maintain trust and avoid potential legal complications.

Furthermore, the case highlights the significance of understanding and complying with local employment laws and regulations. Violations of labor laws can lead to serious legal repercussions, damage the company's reputation, and result in financial penalties, impacting the overall success and viability of the business.

In terms of financial challenges, the decline in Twitter's revenue and struggles against competitors emphasize the need for new businesses to continuously innovate and adapt to the evolving market landscape. Simply relying on existing success or failing to stay ahead of competitors can lead to a decline in revenue and potentially necessitate cost-cutting measures.

The situation faced by former Twitter employees also underscores the importance of fair treatment and support for workers, particularly during times of transition. Neglecting employee well-being and failing to fulfill obligations can have long-term consequences, including negative impacts on morale, productivity, and future recruitment efforts.

For new businesses, these events should serve as a reminder to prioritize effective communication, compliance, innovation, and fair treatment of employees. By doing so, they can create a positive work environment, mitigate legal risks, and position themselves for sustainable growth and success in a competitive market.



Article First Published at: https://www.cnbc.com/2023/07/18/twitter-laid-off-workers-in-africa-last-year-they-say-theyve-been-ignored.html