Elon Musk's social media platform X (formerly Twitter) is demanding former employees in Australia to repay overpaid severance.
As reported by multiple outlets, since Musk's acquisition, X laid off around 80% of its workforce and reportedly made a mistake in severance payments.
Now, X is threatening legal action if ex-employees do not comply.
The Sydney Morning Herald reports that X contacted several former employees, some dismissed over 18 months ago, claiming overpayments due to a currency conversion error.
The excess severance payments range up to $70,000.
However, at least six former employees have received legal notices urging them to return the overpaid amounts.
Meanwhile, emails from X's Asia Pacific human resources department acknowledged the "conversion error" and asked the ex-employees to repay the excess amounts.
The email stated, "It has come to our attention that you received a significant overpayment in error in January 2023. We would be grateful if you could arrange the repayment to us at your earliest convenience."
The overpayment issue stemmed from the valuation and currency conversion of employee shares.
When Musk acquired Twitter in 2022, Twitter shares were valued at $54.20 each (approximately $82 AUD).
X allegedly used an incorrect conversion rate, 2.5 times the correct value, leading to overpayments ranging from $1,500 to $70,000 per individual.
Despite requests, none of the former employees have returned the money.
While, X warned that if repayments are not made, it reserves the right to initiate legal proceedings to recover the overpayments, including interest.
Additionally, X recently requested the return of company laptops nearly 18 months after the layoffs.
However, some ex-employees reported difficulties when previously attempting to return the devices.
