Musk’s X Corp Reaches $500M Tentative Settlement Over Twitter Layoffs

Elon Musk's X Corp has agreed to a $500 million settlement to resolve claims from 6,000 former Twitter employees alleging wrongful termination. The deal, disclosed in a Wednesday court filing, WOULD avert further litigation over severance pay disputes stemming from Musk's 2022 acquisition of the platform.

The mass layoffs affected over half of Twitter's workforce shortly after Musk's $44 billion takeover. Plaintiffs argued the company reneged on promised severance terms that included two months' base salary plus additional compensation for tenure. Instead, dismissed workers reportedly received no more than one month's pay.

Courtney McMillian, Twitter's former head of employee benefits programs, and operations manager Ronald Cooper spearheaded the class action in California. While settlement terms remain confidential, the agreement signals a costly resolution to one of the most contentious labor disputes in tech history.