Musk, X reach settlement with sacked Twitter employees

Elon Musk and his social media platform X have agreed in principle to a $500 million settlement with thousands of former Twitter employees who were laid off after his 2022 takeover.

Court filings on Wednesday revealed that both sides had requested the US Court of Appeals in San Francisco to delay an upcoming hearing while the final terms of the deal are drafted.

“The parties have reached a settlement agreement in principle and began negotiating the terms of a long-form settlement agreement,” the filing stated.

The lawsuit, led by former Twitter employee Courtney McMillian, argued that about 6,000 staff were denied benefits under the company’s severance plan, including up to six months’ salary. The settlement terms have not yet been disclosed and will still need court approval.

Following Musk’s $44 billion acquisition of Twitter in 2022, mass layoffs sparked legal battles over unpaid severance. The company rebranded as X in 2023 and shifted its moderation policies, reinstating previously banned right-wing accounts — a move that led to an exodus of some users.