Musk settles with former employees after nearly two years of legal back-and-forth. The social media giant X is now closing the chapter on thousands of severance disputes.
Musk settles with former employees in arbitration and court
After months of denying responsibility, X has agreed to settle with thousands of workers let go during Elon Musk’s 2022 takeover. The company, formerly Twitter, had laid off more than 5,000 employees after Musk’s acquisition. Now, in a legal U-turn, X is moving to resolve the bulk of those severance claims.
This week, a filing in the U.S. Court of Appeals confirmed a class-action settlement between X and former staffers who claimed the company owed them nearly $500 million. The actual settlement amount remains under wraps.
Arbitrations also resolved as Musk settles with former employees
Separate from the class-action case, X reached deals with over 2,000 individuals who were fighting the company in private arbitration. According to internal communications shared with those workers, the settlements are expected to cover most of the original severance requests plus interest.
That brings the bulk of the employment-related disputes to a close. While the details haven’t gone public, people familiar with the terms say the payouts are substantial enough to resolve long-standing complaints tied to Musk’s sweeping job cuts.
Here’s what has been settled so far:
- Class-action suit tied to $500M in severance
- Over 2,000 arbitration cases
- Interest included in final settlement amounts
Legal battles continue for Musk
Not all of Musk’s legal troubles with ex-employees are over. A separate high-stakes case over $128 million in severance for senior Twitter executives is still active. That group, which includes some of the company’s top former leaders, has not yet reached a deal.
Musk settles with former employees, but stays silent
Neither Musk nor his company has commented on the settlements. X, once quick to challenge worker claims, now appears to be shifting strategy, quietly putting out fires instead of fanning them. But for many ex-employees, the silence may finally come with a check.
