X (Formerly Twitter) Nearing Severance Settlement with Ex-Employees After Mass Layoffs
Over two years after mass layoffs shook the company under Elon Musk's acquisition, former Twitter employees may finally see their severance pay. X, formerly known as Twitter, is nearing a settlement in a class-action lawsuit brought by former staff who were terminated shortly after Musk took over.
A recent court filing reveals that both sides have requested a delay in an upcoming hearing to finalize a settlement agreement.
Following the 2022 acquisition, Musk implemented sweeping workforce reductions, eliminating approximately 80% of Twitter's employees, a staggering total of over 6,000 individuals. While Musk initially proposed a severance package of three months' pay, the lawsuit contends that many former employees received incomplete payments, or in some cases, no payment at all.
The core of the legal dispute centers on claims that Musk's offered severance fell short of what employees anticipated based on a pre-existing Twitter severance plan established in 2019. This plan allegedly promised senior employees up to six months of base salary, plus an additional week's pay for each year of service.
However, in July, a U.S. District Judge in San Francisco sided with Musk, ruling that he wasn't obligated to uphold the severance agreements employees had previously entered into with Twitter. Undeterred, the plaintiffs appealed this decision, and oral arguments were scheduled for the following month, prior to the recent request to postpone the hearing. This suggests a potentially significant development in the ongoing legal battle and possible resolution for those affected by the layoffs.
