Tweet's 6,000 Fired Employees Reach $500 Million Settlement with Elon Musk

Elon Musk

According to Reuters, Elon Musk and his social media company X (formerly Twitter) have reached a preliminary agreement to settle a lawsuit filed by former Twitter employees seeking $500 million in severance pay.

X and the lawyers for the former Twitter employees reported this agreement in filings submitted to the court on Wednesday. Both parties are requesting that the US Court of Appeals delay the upcoming trial to finalize the settlement, provide compensation to laid-off employees, and end the litigation. The specific financial terms of the agreement have not been disclosed.

After acquiring Twitter in 2022 and renaming it X, Musk fired around 6,000 employees. Several former Twitter employees filed lawsuits over issues related to their termination and severance pay, with some cases still pending in courts in Delaware and California.

This settlement agreement will resolve a proposed class-action lawsuit filed by Courtney McMillian, the head of the Twitter ex-employees' welfare project, and Ronald Cooper, the operations manager. As of publication, Musk's lawyers have not commented on this matter.