X, formerly known as Twitter, has reached a settlement with the staff it laid off in its African headquarters over a year ago, according to their legal representation agency. The employees, who were based in Accra, Ghana, were let go by the social media platform in November 2022. They had accused the company of reneging on their redundancy payments. X has not yet issued a statement on the matter.
The affected employees had only recently joined X’s African office, and their employment was abruptly terminated after just a few months. Desperate for their promised financial compensation, they had threatened to take legal action against the company. Finally, their legal representation agency, Seven Seven, confirmed that they have secured redundancy settlements and repatriation expenses for foreign staff, although the specific pay out amount was not disclosed.
Carla Olympio, representing the former X employees, expressed their satisfaction with the resolution, stating that they are relieved to finally receive what is rightfully theirs. The workers are now eager to put this chapter behind them and focus on the future.
It was in 2022 that Elon Musk took charge of X and initiated a massive global workforce reduction, resulting in the dismissal of over 6,000 employees. Musk cited significant daily losses of over $4 million as the driving force behind the downsizing efforts. The Africa office, which comprised less than 20 staff members, had recently transitioned to a new workplace in Accra following approximately eight months of remote work due to the Covid-19 pandemic.
Former X employees had previously testified to the negative impact the company’s treatment had on their mental health and financial stability. The predicament of being owed money and closure by the world’s richest man was described as immensely challenging. The former workers initially believed they would receive payment for an additional month of work upon the termination of their contracts. However, they were immediately denied access to their email accounts, and subsequent salary payments never materialized.
Compounding their difficulties, several employees had relocated from neighboring countries, such as Nigeria, and subsequently found themselves stranded in Ghana with their families due to the sudden job loss and contract termination.
In an interview last April, Elon Musk disclosed to the BBC that X had reduced its workforce from nearly 8,000 employees to 1,500 after his acquisition of the company. However, the affected Africa-based staff claimed to have received no communication regarding this downsizing.
According to Seven Seven, X only engaged in negotiations with the former Africa-based employees after the issue gained prominence through BBC coverage. The company has faced legal action in the past, as ex-employees filed a lawsuit in a California court last year, alleging X’s refusal to pay promised severance packages totaling at least $500 million.
While the settlement brings closure to the redundant Ghana-based X employees, it highlights the challenges faced by those affected by sudden job loss and the subsequent battle for compensation. The case also sheds light on the wider issue of corporate responsibility towards employees, emphasizing the need for fair treatment and adherence to contractual obligations in the workplace.
X’s reputation in Africa now faces scrutiny as the company strives to rebuild trust and salvage its relationships with stakeholders across the continent. The former employees, represented by Seven Seven, have now secured redundancy settlements and repatriation expenses. Although the specific payout remains undisclosed, Carla Olympio, their representative, expressed satisfaction with the resolution, emphasizing the relief of finally receiving what is rightfully theirs. The workers are eager to move past this chapter and focus on the future.
