Elon Musk

Elon Musk Denies Unconfirmed Report that He’s Laying Off Twitter Employees to Avoid Payouts

Elon Musk Denies Unconfirmed Report that He’s Laying Off Twitter Employees to Avoid Payouts

Photo: NBC News

Elon Musk has said an unconfirmed rumor that he is laying off Twitter employees to avoid stock grants is false. Reports from mainstream publications, which are again based on the words of “people familiar with the matter,” have once again been refuted personally by Musk.

Elon Musk, who completed the Twitter purchase on Thursday, denied the New York Times report that the platform’s employees were being fired before November 1 to avoid stock grants due on the day. The New York Times, citing four unidentified people familiar with the matter, said the cuts could begin as early as Saturday. In response to a tweet containing accusations against him and a link to the article, the platform's Chief Twit wrote: “This is false.”

To date, it is known that Twitter Chief Executive Parag Agrawal, Chief Financial Officer Ned Segal, and legal affairs and policy chief Vijaya Gadde have indeed been fired. However, it would be weirder if they stayed in their positions any longer, as it would be at odds with the whole situation that has developed between the former Twitter executives and Musk. The new owner has every reason, and now possibly real evidence, to believe that the dismissed employees violated the rules of the platform, and possibly the law. If these people had remained in their positions, they would have had time to cover up the traces of their actions even more or deeper harm the company.

The Information report, again citing unidentified people familiar with the matter, said that Musk fired top Twitter executives “for cause,” in an apparent effort to avoid severance pay and unvested stock awards. Director of research at Equilar Courtney Yu told Reuters on Friday that the fired executives “should be getting these (severance) payments unless Elon Musk had cause for termination, with cause in these cases usually being that they broke the law or violated company policy.”

© 2022, Eva Fox | Tesmanian. All rights reserved.


We appreciate your readership! Please share your thoughts in the comment section below. 

Article edited by @SmokeyShorts; follow him on Twitter

About the Author

Eva Fox

Eva Fox

Eva Fox joined Tesmanian in 2019 to cover breaking news as an automotive journalist. The main topics that she covers are clean energy and electric vehicles. As a journalist, Eva is specialized in Tesla and topics related to the work and development of the company.

Follow me on X

Reading next

Tesla Filed a Patent for a Hydraulic Coupling Device for Its Structural Battery Pack's Cooling Systems
SpaceX’s Falcon Heavy rocket roared to life for the first time in over three years during a static-fire test

Tesla Accessories