X agrees to resolve massive severance lawsuit filed by ex-twitter employees
The lawsuit stems from the mass layoffs that followed Musk’s acquisition of Twitter in 2022, during which approximately 6,000 employees were dismissed.
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Elon Musk’s X, formerly known as Twitter, has agreed to settle a long-running dispute with former employees over severance payments worth $500 million. According to a court filing on 20 August, reported by Reuters, lawyers representing X Corp and the ex-staff confirmed that a settlement had been reached.
The financial terms of the agreement have not yet been disclosed. However, both parties have asked a United States appeals court to postpone an upcoming hearing so that the settlement can be finalised. The hearing, which was originally expected sooner, is now scheduled to take place on 17 September.
The lawsuit stems from the mass layoffs that followed Musk’s acquisition of Twitter in 2022, during which approximately 6,000 employees were dismissed. The former staff claim they were denied severance benefits that had been guaranteed under a plan dating back to 2019.
The severance plan in question reportedly entitled most Twitter employees to receive two months of base pay along with an additional week’s salary for each year of completed service. However, the lawsuit alleges that laid-off workers received, at most, one month’s severance, with many receiving no payment at all.
The class action was initiated by former Twitter employees Courtney McMillan and Ronald Cooper, who argued that the company’s failure to honour the severance plan amounted to a breach of its obligations. They sought compensation not only for themselves but also on behalf of thousands of other affected workers.
By agreeing to settle, Musk’s X has signalled an end to what had become a high-profile legal battle over employee rights and corporate responsibility in the wake of one of Silicon Valley’s most dramatic acquisitions. The settlement, once finalised, will bring closure to months of litigation, though it remains to be seen how much of the $500 million claim will ultimately be paid out.
