**Elon Musk’s X Corp Reaches Tentative Settlement with Former Twitter Employees**
**Meta Description:** Elon Musk’s X Corp has tentatively agreed to settle a lawsuit with former Twitter employees over severance pay, potentially resolving ongoing litigation.
**URL Slug:** x-corp-settlement-twitter-employees
**Elon Musk’s X Corp Reaches Tentative Settlement with Former Twitter Employees Over Severance Pay**
In a significant development, Elon Musk’s social media company, X Corp, has reached a tentative agreement to settle a lawsuit brought by former Twitter employees who claimed they were owed $500 million in severance pay. This agreement was reported in a court filing on Wednesday, where both parties requested a U.S. appeals court to postpone an upcoming hearing to finalize the settlement, which aims to compensate the terminated employees and conclude the ongoing litigation. The specific financial details of the settlement have not been disclosed.
Following Musk’s acquisition of Twitter in 2022, approximately 6,000 employees were laid off, leading to multiple lawsuits regarding their terminations and severance packages. The settlement addresses a proposed class action initiated in California by Courtney McMillian, the former head of Twitter’s employee benefits programs, and Ronald Cooper, a former operations manager.
In July 2024, a federal judge in San Francisco dismissed the employees’ lawsuit, prompting an appeal to the 9th U.S. Court of Appeals, which was set to hear oral arguments on September 17. Attorneys representing both Musk and McMillian did not respond to requests for comments regarding the settlement.
The lawsuit contended that a severance plan established in 2019 guaranteed most Twitter employees two months of base pay plus one week of pay for each year of service if they were laid off. Senior employees, such as McMillian, were entitled to six months of base pay. However, the lawsuit alleged that Twitter provided laid-off workers with a maximum of one month of severance pay, with many receiving nothing at all. This mass layoff was part of a cost-cutting strategy implemented by Musk after acquiring the company.
As the settlement moves forward, it could bring closure to the ongoing disputes surrounding severance payments and the treatment of former employees during the transition to X Corp.
**FAQ**
**What was the lawsuit about?**
The lawsuit involved former Twitter employees claiming they were owed $500 million in severance pay after being laid off following Elon Musk’s acquisition of the company.
