More than two years after Elon Musk’s takeover of Twitter, some former employees may finally see severance payments. Musk’s X is moving toward a tentative settlement of a class action lawsuit filed by workers dismissed shortly after the acquisition.
Court Filing Signals Progress
The update comes through a court filing in which both parties asked to delay an upcoming hearing, citing ongoing negotiations. The request suggests they are working to finalize a deal.
Following the 2022 takeover, Musk cut more than 6,000 employees — roughly 80% of Twitter’s workforce. Although Musk pledged three months of severance, the lawsuit alleges many workers received less than promised, and some received nothing.
Conflicting Severance Plans
The plaintiffs argue that Twitter’s 2019 severance plan entitled senior employees to up to six months of pay, plus an additional week for each year of service. Musk’s package fell short of those terms.
In July, a U.S. District Judge in San Francisco ruled Musk did not need to honor the preexisting severance agreements. Plaintiffs appealed the decision, and oral arguments were scheduled for next month. That hearing is now on hold as talks continue.
Author’s Opinion
Musk’s handling of the severance dispute reflects a broader pattern that has defined his ownership of Twitter/X: fast, sweeping decisions with little regard for process or long-term fallout. While the settlement might finally give former employees closure, it also highlights how disruptive leadership choices can leave workers in limbo for years. Settlements may resolve legal claims, but they can’t erase the lasting distrust that lingers when basic commitments like pay and severance are contested.
Featured image credit: Heute
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