Former Twitter employees may finally receive severance pay over two years after leaving the company. Elon Musk’s X is in the process of tentatively settling a class action lawsuit filed by workers who were let go post-purchase of Twitter. Both parties requested a delay in a scheduled hearing to work out a settlement deal, as indicated in a recent court filing.
In 2022, following his acquisition of Twitter, Musk laid off over 6,000 employees, slashing the workforce by 80%. While Musk proposed three months’ severance, the lawsuit claims many former employees did not receive full payments, with some receiving none. The suit further notes that Musk’s severance offer was below expectations based on a 2019 Twitter severance plan, which promised senior employees up to six months of base pay plus a week of pay per year of service.
In July, a San Francisco U.S. District Judge ruled that Musk was not obliged to honor the previous severance agreements. The plaintiffs appealed, and oral arguments were slated for a court of appeals the following month before they requested the hearing to be delayed.