Several Twitter employees have filed class action lawsuits alleging that Twitter violates the federal and California Worker Adjustment and Retraining Notification Act (WARN Act) after laying off employees, CNN reported.

Meanwhile, Musk went on Twitter on Saturday to justify his move and said there was no choice when the company was losing millions of dollars daily. He also said that everyone who exited was offered appropriate severance. 

Also Read: Here's Why Kevin O'Leary Is Betting On Elon Musk Coming Out On Top In Twitter Deal

Last week Musk tweeted, "Twitter has had a massive drop in revenue due to activist groups pressuring advertisers, even though nothing has changed with content moderation, and we did everything we could to appease the activists. Extremely messed up! They're trying to destroy free speech in America".

Musk is aiming to reduce the company's costs, not only because Twitter is facing a high burn rate, but also because he needs to repay the $13 billion in debt he raised to swing the takeover.

He has also announced that the company will charge $8 per month from verified accounts. He tweeted about the new pay structure on Saturday. 

Twitter posted a net loss of $270 million in the second quarter that ended June 30, 2022, compared to a profit of $66 million in the same period last year. 

Musk purchased Twitter for $44 billion and is under pressure to cut costs after making a deal in which he overpaid, according to some analysts.