
Elon Musk's X Set to Finally Resolve $500 Million Severance Dispute!
2025-08-21
Author: Yan
Are Ex-Twitter Employees About to Get Their Due?
After a long wait of over two years, it seems that former Twitter employees who were laid off during Elon Musk’s tumultuous takeover of the platform may finally see their severance payments. The company, now known as X, is reportedly moving towards a tentative settlement in a class action lawsuit initiated by these workers.
The Backstory: A Massive Layoff and Unfulfilled Promises
In 2022, when Musk took the helm, he shocked the tech world by slashing the workforce by more than 6,000 employees—an eye-watering 80% reduction in headcount! While he had initially promised three months of severance, many affected employees claim they received either incomplete payments or, in some cases, nothing at all.
A Discrepancy in Expectations
The lawsuit argues that Musk's severance offer fell significantly short of the more generous terms laid out in Twitter's own severance policy established in 2019, which provided senior employees with up to six months of pay plus additional compensation based on years of service. Workers expected much better treatment, considering the precedent set.
A Legal Twist: Court Rulings and Appeals
In a surprising turn of events, a U.S. District Judge in San Francisco ruled that Musk was not obligated to uphold the severance agreements that Twitter had originally made with its employees. The plaintiffs, however, are not backing down and have filed an appeal, preparing to present their case in an upcoming court hearing.
What's Next for the Former Employees?
In a last-minute twist, both legal teams have requested a delay on the scheduled hearing, hinting that a resolution could be on the horizon. Will former Twitter employees finally get their deserved severance? The coming weeks will tell!