More than two years after Elon Musk’s takeover of Twitter, some former employees may finally receive the severance pay they’ve been fighting for. Musk’s company, now rebranded as X, is reportedly working on a tentative settlement to resolve a class action lawsuit filed by workers laid off shortly after the acquisition.
A recent court filing revealed that both sides requested to delay an upcoming hearing in order to finalize the deal.
When Musk purchased Twitter in 2022, he laid off over 6,000 employees, cutting the workforce by about 80%. While he offered three months of severance at the time, the lawsuit alleges that many employees didn’t receive full payments, and some received nothing at all.
The lawsuit also claims that Musk’s three-month offer fell short of Twitter’s previous severance plan, established in 2019, which promised senior employees up to six months of base pay plus an additional week of pay for every year of service.
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In July, the U.S. District Judge in San Francisco ruled that Musk wasn’t obligated to honour Twitter’s former severance agreements. The plaintiffs appealed that decision, and oral arguments were scheduled for next month before the tentative settlement paused proceedings.
