What do digital layoffs mean for workers and companies?

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READ: There has been considerable backlash to the idea of dismissing staff by email or other digital means.

Analysis: there has been considerable backlash to the idea of dismissing staff by email or other digital meansElon Musk is progressing plans to slim down Twitter since he bought the 396 million-member platform for $44 billion on October 27. Musk's deal has taken Twitter private, dissolved the platform's board and enhanced his unilateral power as CEO. But mass redundancy announcements made since he took control have been scrutinised globally.

But tweets by some employees showed they found out before the email arrived when they could not access their work accounts or other internal systems. And a class action lawsuit filed in the US on November 3rd claims Twitter locked employees out of their accounts, with at least one of the five plaintiffs being"terminated without notice or severance pay", according to news reports.

Unfortunately, Twitter's approach resembles strategies adopted by a growing number of companies in recent years. Klarna, a Swedish financial technology company, sent a prerecorded message to inform employees of 700 layoffs last May, while P&O ferries dismissed 800 staff over Zoom in March. Mortgage company Better.com made 900 employees redundant by Zoom in 2021, a year after electric scooter company Bird used a Zoom webinar to dismiss more than 400 workers.

Under UK and EU law, companies must consult with staff over mass redundancies. This may explain why Twitter employees in the UK and Ireland are reported to have received a slightly differently worded email informing them that their job is"potentially" impacted or"at risk". From RTÉ Radio 1's Brendan O'Connor Show, Finn McRedmond profiles the man behind SpaceX, Tesla and now Twitter.

Civil society groups and alliances were already concerned about the direction Twitter may take following its takeover. Musk has called out"activist groups" for supposedly pressurising advertisers to stop working with Twitter.

 

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