In another controversy, Elon Musk’s social media platform X is now asking some former employees in Australia to return overpaid severance payments. The platform, which has laid off nearly 80 per cent of its employees since Musk’s acquisition, reportedly made a mistake while offering severance payments to these employees and is now threatening legal action against these former employees if they do not comply with its demands.

According to a report in the Sydney Morning Herald, X has contacted several former employees, some of whom were dismissed more than 18 months ago, claiming they were overpaid due to a currency conversion error. The severance amount paid to the former employees in question is up to $70,000. At least six former employees have received legal notices from X urging them to return the overpaid amounts.

In an email seen by the Sydney Morning Herald, X’s Asia Pacific human resources department acknowledged a “conversion error” and asked former employees to refund the excess amount to the company. “It has come to our attention that you have mistakenly received a significant overpayment in January 2023… We would be grateful if you could arrange repayment to us at your convenience (using the account details below),” the email said.

The issue of overpayment to X employees reportedly stems from the valuation and currency conversion of employee shares. When Musk acquired Twitter in 2022, Twitter shares were valued at $54.20 per share (about $82 AUD). The error occurred when X converted share rights into Australian dollars, reportedly using a conversion rate that was 2.5 times higher than the correct value. This mistake caused the company to pay more severance pay to laid-off employees, ranging from $1,500 to $70,000 per person.

However, despite these requests, none of the former employees have yet complied and returned the money. X has even warned that if repayment is not made, it reserves the right to initiate legal proceedings to recover the overpayment along with interest.

This is not the first time Musk has faced problems related to severance payments. Earlier this year, Musk apologized for the quality of severance packages given to employees laid off from Tesla, where he also serves as CEO. At X itself, Musk has made significant changes, including laying off about 80 percent of the workforce. Adding to the complaints from former employees, X has recently requested the return of company laptops, about 18 months after the layoffs. Some former employees reported that they had attempted to return the devices before, but faced difficulties.