Summary
Elon Musk and his company X (formerly Twitter) have reached a provisional settlement with former employees who sued for $500 million in severance pay. This settlement relates to the layoffs of about 6,000 employees as part of cost-saving measures after Musk took over the company in 2022. The details of the settlement are not yet public and need court approval.
Key Facts
- Elon Musk and X have reached a provisional settlement over a lawsuit for $500 million in severance pay.
- The lawsuit was filed by former employees who were laid off when Musk took over X in 2022.
- About 6,000 employees were laid off, which was more than half of Twitter's workforce.
- Laid-off workers claimed they were denied severance benefits promised by the company.
- The company reportedly offered at most one month's severance, while some employees received none.
- This settlement still requires court approval and details are not public yet.
- The layoffs at Twitter were part of broader cost-cutting trends in the tech industry.
- Other tech companies like Facebook, Google, and Microsoft also laid off a large number of workers following a hiring increase during the early COVID-19 pandemic.
