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 agreement was revealed in a court filing on Wednesday. Both sides asked the San Francisco appeals court to delay a hearing. They said more time was needed to finalize the paperwork.
Lawsuit followed large-scale layoffs
The dispute began after Musk dismissed about 6,000 employees in 2022. That represented more than half of the company’s workforce. Many of the affected staff challenged the severance packages in court.
Representatives of X and the employees’ lawyers have not issued public comments.
Court documents confirmed a settlement in principle had been reached. They also noted that negotiations for a detailed agreement are ongoing.
Terms of settlement remain private
The details of the deal have not been disclosed. The agreement still requires court approval before it becomes final.
Former employee Courtney McMillian led the lawsuit. She argued thousands of staff were denied benefits promised under the severance plan.
The claim stated employees should have received up to six months of pay. Instead, most received one month or less. Some received nothing.
Musk’s job cuts reshaped company operations
The layoffs dismantled key teams, including trust and safety, human rights, and media relations. Musk’s actions became one of the first major workforce reductions in the tech industry.
Other technology firms soon followed. Google, Microsoft, and Facebook laid off tens of thousands of employees. These reductions came after years of heavy hiring during the pandemic’s digital surge.
Musk mirrored approach in government role
Earlier this year, Musk briefly led President Donald Trump’s Department of Government Efficiency. The office aimed to reduce spending and cut jobs. Musk applied the same approach there, overseeing thousands of federal layoffs.
