Elon Musk’s X Reportedly Nears Settlement in $500M Severance Dispute
Former Twitter Staff May Soon Receive Payouts
More than two years after departing the company, former Twitter employees could finally see long-awaited severance payments. Elon Musk’s rebranded platform, X, is said to be close to resolving a class-action lawsuit brought by workers who were laid off shortly after Musk’s 2022 acquisition of Twitter.
According to a recent court filing, both sides have asked the court to postpone an upcoming hearing to allow time to finalize settlement terms.
Mass Layoffs and Disputed Severance
After taking control of Twitter in 2022, Musk initiated sweeping job cuts, reducing the workforce by over 6,000 employees—a reduction amounting to nearly 80% of staff. Although Musk had pledged to provide three months of severance, the lawsuit argues that many former employees received incomplete payments, while others allegedly received none at all.
The plaintiffs further contend that Musk’s offer fell short of the 2019 Twitter severance policy, which had entitled senior employees to up to six months of base pay, in addition to one week of pay per year of service.
Legal Setbacks and Appeals
In July, a U.S. District Judge in San Francisco ruled that Musk was not obligated to uphold Twitter’s prior severance agreements. Despite this setback, the former employees appealed the decision. Both parties were preparing for oral arguments before the court of appeals next month, until the recent filing requested a delay in proceedings—suggesting that a settlement may be imminent.
What Comes Next
If finalized, the settlement could bring closure to one of the largest disputes stemming from Musk’s turbulent takeover of Twitter, now X. While the details of the potential payout remain undisclosed, the resolution could finally deliver long-promised compensation to thousands of former employees.
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