In a dramatic shift following Elon Musk’s acquisition of Twitter, the company has embarked on a significant reduction of its workforce, laying off a substantial total of 983 employees in California, as confirmed by three letters sent to regional authorities that were reviewed by CNBC. This drastic move marks a pivotal moment for the social media giant, which is now navigating the challenges of restructuring under new ownership.

Musk, the new CEO and sole director of Twitter, addressed the layoffs in a tweet, stating, “Regarding Twitter’s reduction in force, unfortunately, there is no choice when the company is losing over $4 million a day. Everyone let go was offered three months of severance, which is 50% more than legally required.” This statement highlights the financial pressure the platform is currently under as it aims to stabilize its operations.

The layoffs were not limited to California, and CNBC was unable to immediately verify the accuracy of Musk’s claims regarding the company’s financial losses. If true, the reported daily loss of $4 million would equate to an alarming annual deficit of approximately $1.5 billion, raising questions about the long-term sustainability of the platform’s business model.

The federal Employee Adjustment and Retraining Notification (WARN) Act mandates that employers provide advance notice, typically within 60 days, prior to mass layoffs or plant closures in California. This is designed to protect workers and give them time to prepare for the transition.

According to the WARN letters from Twitter, which were shared by the California Employment Development Department, the company informed affected employees on November 4. Many of those laid off reported losing access to their email and other internal systems at Twitter as early as November 3, as detailed in public posts on social media, including Twitter itself, illustrating the abruptness of the layoffs.

This situation may be classified as “pay in lieu of notice” under Californian law, depending on specific employment agreements. Furthermore, permanent terminations are projected to commence in January 2023, as indicated in the WARN notices, further complicating the situation for impacted employees.

In three separate WARN notice letters issued by Twitter’s Human Resources Division, without signatures from specific executives, the company stated: “Affected employees will be compensated for all wages and benefits to which they are entitled through their termination date.” This assures employees that they will receive due compensation even amid the upheaval.

According to the WARN notice, Twitter has laid off approximately 784 employees in San Francisco, including 9 executive and senior-level officers or managers, 147 mid-level staff who typically reported directly to top executives, 592 other professionals, and 36 sales and administrative support staff combined. This comprehensive breakdown highlights the scale of the layoffs and the impact on various levels of the organization.

In addition, at the company’s satellite locations in Santa Monica, Twitter has reduced its workforce by roughly 93 employees, which includes 17 mid-level officers and managers, 66 professionals, and 10 combined sales and administrative support staff, as confirmed by the WARN notice. This reflects the widespread nature of the layoffs across different offices.

At a San Jose office, the company has let go of about 106 employees, which includes one executive or senior-level official or manager, 18 mid-level officers and managers, 85 professionals, and two administrative support staff, according to the WARN notice. This further emphasizes the extensive scope of the job cuts across the company’s various locations.

In response to these layoffs, Twitter has faced legal challenges, as former employees have filed a proposed class action lawsuit led by employee rights attorney Shannon Liss Riordan and others. They are concerned that employees did not receive adequate notice, as mandated by federal and California law, regarding their terminations during the mass layoffs, highlighting potential legal ramifications for the company.

Attorney Shannon Liss-Riordan, representing the terminated Twitter employees, did not immediately respond to a request for comment, leaving questions about the ongoing legal proceedings and their implications for both the company and the affected individuals.