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Looking at the article I don't think they are legal, they seem to be betting not all of the ex employees will take it to court. So they are probably expecting t

Looking at the article I don't think they are legal, they seem to be betting not all of the ex employees will take it to court. So they are probably expecting that less payout + legal costs < than paying all the severances.' Or it's just a delaying tactic as Twitter just doesn't have the money to pay it now, so later is better, even if it costs more.

fooey 4y ago
Paying out 90 days severance for the majority of your workforce is a big stack of cash that has to come from somewhere It's not like Twitter has any cash reserves after it was just saddled with a few billion dollars of debt, and I doubt there are many banks rushing to give Twitter even short term loans
- kccoder 4y ago
  Something tells me one of the richest men on the planet has access to sufficient funds to meet his obligations. If he doesn't, then who does? Yes, it might cost him more than he'd like, but in a civilized society, people should do what they say, and honor contracts they pen or inherit, otherwise they're just cheats and con-men.
  - TheAlchemist 4y ago
    He's not the richest men on the planet anymore. Besides, most of his fortune will evaporate soon - he probably knows it very well, given his stock sales of the past months. It's a house of cards, where leverage, free money, meme investing but also probably fraud in many ways, pumped Tesla share prices to Tulip Mania levels. You are absolutely right about honoring contracts - what does this whole Twitter buying saga tells us about his willingness to honor contracts when they are against his interests ?
crazygringo 4y ago
Since it covers thousands of ex-employees, wouldn't it probably turn into a class action suit? In which case it hardly seems they'd get away with less payout in the end. I can't help but wonder if the law in that case would allow for any kind of punitive damages as well.
- anigbrowl 4y ago
  Seems like a good way to attract the interest of regulators, since deliberate non-payment of liabilities is edging across the line into fraud.

fooey 4y ago

Paying out 90 days severance for the majority of your workforce is a big stack of cash that has to come from somewhere It's not like Twitter has any cash reserves after it was just saddled with a few billion dollars of debt, and I doubt there are many banks rushing to give Twitter even short term loans

kccoder 4y ago
Something tells me one of the richest men on the planet has access to sufficient funds to meet his obligations. If he doesn't, then who does? Yes, it might cost him more than he'd like, but in a civilized society, people should do what they say, and honor contracts they pen or inherit, otherwise they're just cheats and con-men.
- TheAlchemist 4y ago
  He's not the richest men on the planet anymore. Besides, most of his fortune will evaporate soon - he probably knows it very well, given his stock sales of the past months. It's a house of cards, where leverage, free money, meme investing but also probably fraud in many ways, pumped Tesla share prices to Tulip Mania levels. You are absolutely right about honoring contracts - what does this whole Twitter buying saga tells us about his willingness to honor contracts when they are against his interests ?

crazygringo 4y ago

Since it covers thousands of ex-employees, wouldn't it probably turn into a class action suit? In which case it hardly seems they'd get away with less payout in the end. I can't help but wonder if the law in that case would allow for any kind of punitive damages as well.

anigbrowl 4y ago
Seems like a good way to attract the interest of regulators, since deliberate non-payment of liabilities is edging across the line into fraud.