Elon Musk and X Settle With Laid-off Twitter Employees

Sun Aug 24 2025 14:03:03 GMT+0300 (Eastern European Summer Time)
Elon Musk and X Settle With Laid-off Twitter Employees

Musk’s company X has come to a tentative agreement with former Twitter employees over a severance dispute.


Elon Musk and his company X have reached a preliminary settlement with ex-Twitter employees who sued for $500 million in severance pay, affecting about 6,000 workers dismissed during cost-cutting measures after Musk's acquisition in 2022.

The legal dispute came to light as both parties submitted a request to the US appeals court in San Francisco, advocating for a delay in an upcoming hearing to finalize the settlement details. These former employees alleged that they were unfairly denied benefits outlined in the company's severance plan following mass layoffs initiated by Musk, which included cutting more than half of the workforce.

Launched by former Twitter employee Courtney McMillian, the lawsuit claims that workers were entitled to severance payments, with some eligible for as much as six months’ salary, while the company provided only up to a month of severance or no compensation at all in many cases. Musk's sweeping layoffs notably impacted several key departments, leading to a notable reduction in operational teams linked to trust, safety, and human rights.

The layoffs represented a larger trend within the tech industry, where firms, spurred by pandemic-era hiring surges, have faced subsequent retrenchments. Notably, other giants like Facebook, Google, and Microsoft followed suit, laying off tens of thousands of employees as the economic climate shifted.

Musk's management strategies have previously seen him overseeing federal workforce reductions as well, showcasing a consistent approach to cost management across both private and public sectors. As the situation develops, court approval will be necessary before any finalized agreement regarding the settlement is publicized.

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