Elon Musk and his platform X have reached a settlement with dismissed employees. The workers had sued the company for $500 million in unpaid severance.
The agreement appeared in a court filing on Wednesday. Both parties asked the San Francisco appeals court to postpone a hearing. They want time to finalize the settlement paperwork.
Mass layoffs after Musk takeover
The legal battle followed Musk’s decision to dismiss around 6,000 staff in 2022. That amounted to more than half of the workforce. Many former employees challenged the severance packages offered.
Lawyers representing the workers and X have not issued any statements.
Court filings confirmed that both sides agreed on a settlement in principle. They also noted ongoing talks to complete a full agreement.
Terms remain confidential
The exact settlement conditions have not been disclosed. The deal still requires approval from the courts.
The case was led by former employee Courtney McMillian. She argued that thousands of staff were denied benefits under the company’s severance plan.
The claim said workers should have received up to six months of pay. Instead, most received at most one month. Some got nothing at all.
Company restructuring under Musk
The layoffs dismantled key teams such as trust and safety, human rights, and media relations. Musk’s decisions marked one of the first big job cuts in the tech industry’s push to reduce costs.
Soon after, other firms followed. Facebook, Google, and Microsoft each announced tens of thousands of job cuts. These came after a surge in hiring during the pandemic’s digital expansion.
Musk mirrored moves in public sector
Earlier this year, Musk briefly led President Donald Trump’s Department of Government Efficiency. The office was created to cut spending and reduce staff. Musk took a similar path there, overseeing the dismissal of thousands of federal employees.
