Elon Musk’s X Poised to Settle $500 Million Severance Lawsuit Soon

More than two years after their exit, some former Twitter employees might finally receive their severance payouts. Elon Musk’s X is engaging in initial discussions to resolve a class action lawsuit filed by those terminated shortly after his acquisition of Twitter.

This news comes from a recent court filing where both parties sought to postpone an impending hearing to facilitate negotiations.

Following Musk’s takeover of Twitter in 2022, over 6,000 employees were let go, reducing the workforce by nearly 80%. Although Musk promised three months of severance pay, the lawsuit claims many former employees did not receive the full amount, with some allegedly getting nothing.

Furthermore, the lawsuit argues that Musk’s severance offer fell short of employee expectations based on a 2019 severance plan, which would have entitled senior staff to as much as six months of base pay, plus an additional week for each year of service.

However, a U.S. District Judge in San Francisco ruled in July that Musk was not required to uphold the severance agreements made between Twitter and its employees. The plaintiffs have appealed this ruling, and while oral arguments were scheduled for next month in an appellate court, both sides have since asked for a delay.