On November 4, Musk began laying off Twitter employees, laying off about 7,500 employees from the company, reducing the company’s workforce. Just days after the $44 billion purchase of Twitter on October 27, the CEO is expected to cut 50% of Twitter’s workforce, or about 3,500 employees.

In response to Twitter’s layoffs, the company’s employees filed a class-action lawsuit against Musk in San Francisco federal court, Reported Bloomberg, the lawsuit alleges that Twitter is violating federal and California laws by firing employees without sufficient notice.

This suggests the need to amend the federal law, which bars large companies from mass layoffs without at least 60 days’ notice. Prominent civil rights attorney Lisa Bloom has argued that the law, which applies to all California businesses, has been ignored.

Attorney Shannon Lees-Reardon, who filed the class action on Nov. 3, said all Twitter employees should be aware of their rights. The lawyer pointed out that the employees should not give up their rights and there is a way for them to pursue their rights.

Also Read: 10 Things You Didn’t Know About Billionaire Elon Musk

Attorney Liss-Riordan took on Musk’s electric car company Tesla case over similar claims in June 2022. Scale down Musk makes up about 10% of its workforce. Tesla ultimately won the case in closed arbitration instead of open trial, but Musk reportedly called Tesla’s lawsuit “frivolous.” p hasLes Riordan said: “Musk seems to be repeating the same rules as at Tesla.”

The layoffs are part of several changes underway at Twitter since Musk took control, including a paid account review. According to reports, begins Twitter has been responsible for reviewing Twitter since November 7.

Is Musk’s Action Affected by the Cryptocurrency Market?

The mass layoffs aren’t just about laying off Twitter employees, as many companies around the world are downsizing amid the ongoing tech slowdown. Tech giants including Meta, Amazon, Microsoft and Google have suspended hiring or cut jobs for several months.

Also Read: Dogecoin Price Predictions Return To Twitter After Elon Musk Acquisition News

Several crypto companies were also affected, increasing the impact of a bear crypto market. According to statistics I collected it According to crypto data provider CoinGecko, cities like San Francisco, Dubai and New York have been hit hardest by the cryptocurrency market crash so far in 2022.

The news comes after the New York Stock Exchange de-listed Twitter on October 28, after the social media giant transformed into a private company. Other crypto-friendly trading platforms such as Itoro and Robinhood have removed Twitter shares from their platform. According to research firm Bot Sentinel’s estimates, maybe is lost Since acquiring Musk, Twitter has more than 1 million users, or 877,000 accounts.