Elon Musk’s social media network, X (previously Twitter), has become entangled in a fresh severance compensation issue. The corporation is pursuing compensation from numerous former Australian employees, alleging that they were overpaid owing to a currency conversion issue. This development comes amid ongoing tensions between X and its ex-workforce.
The problem arose from layoffs in the year 2022, when X, led by Musk, let away almost 80% of its Australian staff. During the severance procedure, a mistake was purportedly made in computing the benefits. According to the Sydney Morning Herald, X utilized a rate of exchange that was 2.5 times higher than the actual amount while converting US dollar-denominated stock rights to Australian dollars. Overpayments ranged from $1,500 to a whopping $70,000 per employee.
X has reached out to at least six former workers, some of whom were fired over a year ago, requesting the recovery of unearned wages. The corporation has written legal warnings, ordering them to reimburse the claimed mistakes and threatening a lawsuit if they do not comply. Emails obtained by the Sydney Morning Herald show X’s Asia Pacific HR department acknowledging the “conversion error” and requesting the return of the funds.
While X insists on repayment, none of the affected employees have yet returned the money. The situation adds to the grievances of former X employees who have already faced difficulties retrieving company property. Some ex-workers reportedly encountered problems returning laptops requested by X nearly 18 months after their dismissal.
This currency conversion error is not the first severance-related issue Musk has faced. Earlier in 2024, he apologized for the quality of severance packages offered to laid-off Tesla employees, where he also serves as CEO. The current situation in Australia further strains relations between X and its former workforce.
Legal experts point out that while Australian law allows companies to recover overpayments, employees have the right to request detailed explanations and proof of the error. It remains to be seen if X will pursue legal action against its ex-employees, and how the situation will be resolved. This new controversy highlights the ongoing challenges X faces in navigating employee relations and legal complexities under Musk’s leadership.
