In a significant development for former employees of a well-known social media platform, there is a possibility that they may finally receive their long-awaited severance payments. Following a tumultuous period after the acquisition of the platform, the company is reportedly in discussions to resolve a class action lawsuit initiated by workers who were terminated shortly after the takeover.
This update comes from a recent court document where both the plaintiffs and the company have requested a postponement of an upcoming court hearing to facilitate negotiations towards a settlement.
After the acquisition in 2022, the new leadership made drastic cuts, resulting in the layoff of over 6,000 employees, which represented a staggering reduction of approximately 80% of the workforce. Although the company initially offered three months of severance pay, the lawsuit contends that many former employees either did not receive the full amount or were left without any compensation.
Furthermore, the lawsuit argues that the severance offer was significantly less than what employees had anticipated based on a previous severance policy that had been established in 2019. Under that policy, senior employees were entitled to severance packages that could reach up to six months of their base salary, in addition to one week of pay for each year of service.
In a ruling made in July, a U.S. District Judge in San Francisco determined that the new leadership was not obligated to uphold the severance agreements that had been previously established with the employees. However, the plaintiffs have appealed this decision, and both parties were preparing to present oral arguments in an appellate court next month before opting to delay the hearing.