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Aug 22, 01:34 PM
Elon Musk’s X Corp Reaches Tentative $500 Million Settlement in Severance Lawsuit by 6,000 Former Twitter Employees After 2022 Layoffs
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Business
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Elon Musk’s X Corp Reaches Tentative $500 Million Settlement in Severance Lawsuit by 6,000 Former Twitter Employees After 2022 Layoffs

Authors
  • Reuters
  • TechCrunch
  • Proceso
28

Elon Musk and his social media company X Corp, formerly known as Twitter, have reached a tentative settlement to resolve a $500 million class-action lawsuit filed by approximately 6,000 former Twitter employees. The lawsuit alleged that these employees were owed severance pay following mass layoffs after Musk's acquisition of Twitter in 2022, which saw nearly 60% of the workforce cut. The settlement aims to address claims that severance payments were withheld or denied in violation of required notice procedures during the layoffs. The exact terms and individual payout amounts of the settlement have not been disclosed. This agreement comes amid ongoing scrutiny of Musk's management practices at Twitter and follows a broader context of legal challenges involving Musk's companies.

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