Musk’s Twitter Layoffs Generate Thousands of Legal Headaches

Twitter Inc.’s legal battles over its mass layoffs last fall continue to grow, with two more former workers filing class action complaints and approximately 2,000 ex-employees pursuing claims in individual arbitration.

The social media company owned and operated by Elon Musk’s recently minted X Corp. faces challenges both in and out of court because many, but not all, of its former workers signed binding arbitration agreements. Twitter included the contracts in the packet of documents given to job applicants who were offered a position.

The outcomes of those legal fights will test the company’s strategy for dealing with the ...