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Elon Musk’s company X, formerly Twitter, has reached a tentative settlement with former employees who sued for $500m in severance pay.
The lawsuit was filed after approximately 6,000 workers were laid off as a cost-cutting measure following Musk’s 2022 takeover.
A court filing on Wednesday revealed that both parties have reached an agreement in principle and are currently negotiating the final terms. The settlement details have not yet been made public and are pending court approval.
The lawsuit, led by former employee Courtney McMillian, alleged that the company failed to provide severance packages as outlined in their company plan, which in some cases included up to six months’ salary. According to the lawsuit, some employees received as little as one month’s pay, while others received nothing at all.
This legal action is one of many taken by former staff following the extensive layoffs. The downsizing at Twitter was one of the first in a series of mass layoffs that swept through the tech industry as companies, which had expanded rapidly during the pandemic, began to cut costs.
The layoffs at X were part of a wider trend that also saw major tech firms such as Meta, Google and Microsoft lay off tens of thousands of workers.
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