Elon Musk and his company X have agreed to a settlement with ex-staff. The employees had sued for $500 million in unpaid severance.
The deal was revealed in a court filing on Wednesday. Both parties asked the San Francisco appeals court to delay a scheduled hearing. They said more time was needed to complete the settlement paperwork.
Mass layoffs sparked lawsuit
The dispute began after Musk dismissed around 6,000 workers in 2022. That was more than half of the company’s workforce. Many of the affected employees challenged the severance packages in court.
So far, neither X nor the employees’ lawyers have commented publicly.
Court records confirmed that a settlement in principle had been reached. They also noted that negotiations for a full agreement are ongoing.
Terms of settlement remain confidential
The details of the deal have not been disclosed. A court must approve the settlement before it becomes final.
Former employee Courtney McMillian led the lawsuit. She argued that thousands of workers were denied benefits promised under the severance plan.
The case said employees should have received up to six months of salary. Instead, most received one month or less. Some received nothing at all.
Musk’s cuts reshaped the company
The layoffs dismantled critical teams, including trust and safety, human rights, and media relations. Musk’s actions became one of the first major workforce reductions in the tech sector.
Other companies soon followed. Google, Microsoft, and Facebook later laid off tens of thousands of staff. These cuts came after years of heavy hiring during the pandemic’s digital boom.
Musk used similar approach in government
Earlier this year, Musk briefly led President Donald Trump’s Department of Government Efficiency. The agency aimed to reduce costs and cut jobs. Musk applied the same approach there, overseeing thousands of federal layoffs.
