The agreement’s specifics remain private and must be validated by the court before implementation. The group of plaintiffs claimed that they were denied significant severance payments—potentially up to six months' salary—while many received merely one month, or nothing at all, following their dismissal. In a broader context, these layoffs were part of a vast downsizing trend among tech companies following the expansion phase initiated during the pandemic, where several firms swiftly reduced their workforces, including giants like Facebook, Google, and Microsoft. Musk has also been active in cutting jobs within federal agencies, showcasing a continued pattern of aggressive cost-reduction measures across multiple sectors.
Elon Musk's X Reaches Settlement with Former Employees Over Severance Pay

Elon Musk's X Reaches Settlement with Former Employees Over Severance Pay
Elon Musk's social media company X has come to a preliminary settlement with ex-employees pursuing $500m in severance payments.
Billionaire Elon Musk's company, formerly known as Twitter, has reportedly achieved a tentative agreement with former employees who initiated legal action seeking $500 million in severance pay after being laid off. The settlement was disclosed in a recent court submission to the US appeals court in San Francisco, where the involved parties have jointly requested a postponement of an upcoming hearing to finalize the necessary documentation. The lawsuit was initiated by former worker Courtney McMillian, alleging that roughly 6,000 staff were improperly denied severance benefits, which were due following their termination, as part of a mass layoff strategy that impacted over half the workforce after Musk's acquisition of the platform in 2022.