• Elon Musk faces $3.5M arbitration fees for unpaid severance to former Twitter employees.
• Numerous lawsuits have been filed against Elon Musk.
• X is dealing with approximately 2,200 arbitration cases filed by former employees.

Elon Musk is facing repercussions due to allegations of neglecting to make severance payments to former Twitter employees.

Numerous lawsuits have been filed against Musk, one of the world’s wealthiest individuals, accusing him of not fulfilling severance payments for the 6,000 employees he terminated after acquiring Twitter.

According to a recent CNBC report, the technology company now known as X is dealing with approximately 2,200 arbitration cases filed by former employees, which come with mandatory fees totaling $3.5 million.

This amount doesn’t even include the actual severance payments owed to the employees Musk let go.

In October, shortly after taking control of Twitter, Musk carried out a significant round of layoffs that affected more than half of the company’s workforce.

He had promised to provide most employees with at least two months’ salary and an additional week’s pay for each year of service at the company.

However, thousands of individuals claim they haven’t received any compensation, leading former employees to initiate multiple legal actions to pursue the benefits they were promised.

One of these lawsuits, started earlier this year, invokes an arbitration provision outlined in employees’ contracts.

As reported by Mashable, this provision places the responsibility for covering $1,600 in arbitration expenses per two-party case on Musk’s company, while former employees are only required to contribute $400.

With more than 2,000 cases, the total arbitration cost for the social media network alone amounts to nearly $4 million.

Reportedly, X has contested the obligation to settle these expenses, arguing that it did not force former employees to move their disputes to arbitration.

As a result, former staff members have initiated another legal action, requesting that the company cover the fees associated with their original filings.