Twitter Faces Chaos, Lawsuits, and FTC Scrutiny Under Musk
Elon Musk's second week of owning Twitter brings mass layoffs, wrongful termination lawsuits, and federal regulatory concerns as the platform descends into operational chaos.
Elon Musk's ownership of Twitter enters its second week with unprecedented chaos as half of the 7,500-person workforce faces sudden termination. Employees report losing access to systems mid-meeting, and the abrupt mass layoff prompts a class-action lawsuit from former workers who claim the move violates federal and California WARN Acts requiring 60 days' notice.
The operational fallout forces Twitter leadership to ask dozens of fired employees to return after realizing the layoffs mistakenly cut essential staff needed to build Musk's desired platform features. Most of those asked to return decline the offer, with only a small number of foreign workers on visas agreeing to come back to avoid deportation.
Amid this internal turmoil, advertisers freeze their spending on the platform and the Federal Trade Commission expresses concern that Musk's Twitter is ignoring its obligations under a previous privacy settlement. Despite the rapidly escalating corporate crisis, Musk continues to post casually on the social network as his $44 billion investment faces severe instability.