Elon Musk's social media platform X is embroiled in another controversy, this time involving demands for repayment of overpaid severance from some former employees in Australia. The platform, which laid off approximately 80% of its workforce since Musk's acquisition, has reportedly made a mistake in calculating severance pay and is now threatening legal action if these ex-employees do not return the excess amounts.

According to The Sydney Morning Herald, X has contacted several former employees, some of whom were dismissed over 18 months ago, asserting that they were overpaid due to a currency conversion error. The overpayments, which range up to $70,000 per individual, stem from the miscalculation of severance packages during the transition from Twitter to X.

Emails obtained by The Sydney Morning Herald reveal that X's Asia Pacific human resources department admitted the error and requested the former employees repay the excess amounts. The communication read, "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 [using the account details below] at your earliest convenience."

The error reportedly originated from the valuation and currency conversion of employee shares when Musk acquired Twitter in 2022. At that time, Twitter shares were valued at $54.20 each (approximately $82 AUD). X's mistake occurred during the conversion of these share entitlements into Australian dollars, allegedly using a conversion rate 2.5 times higher than the correct value. This led to substantial overpayments in severance packages, with amounts ranging from $1,500 to $70,000 per individual.

Despite the requests for repayment, none of the former employees have complied so far. X has warned that if repayments are not made, the company reserves the right to initiate legal proceedings to recover the overpayments, including interest.

This incident adds to the series of severance-related issues Musk has faced. Earlier this year, he apologized for the inadequate severance packages provided to laid-off Tesla employees, where he also serves as CEO. At X, Musk has implemented significant changes, including mass layoffs. Recently, the platform requested the return of company laptops nearly 18 months after the layoffs, with some ex-employees reporting difficulties in returning the devices despite previous attempts.

The ongoing controversy highlights the challenges and disputes that have arisen during Musk's tenure and the significant changes he has made to the companies under his leadership.