Elon Musk and his company X have reached a settlement with former staff. The employees had sued for $500 million in unpaid severance.
The agreement appeared in a court filing on Wednesday. Both parties asked the San Francisco appeals court to postpone a hearing. They said more time was needed to finalize the paperwork.
Legal battle followed mass layoffs
The case began after Musk dismissed around 6,000 employees in 2022. That was 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 publicly commented.
Court records confirmed a settlement in principle had been reached. They also noted that both sides are negotiating the full agreement.
Terms of the deal remain confidential
The conditions of the settlement have not been disclosed. Court approval is required before it takes effect.
Former employee Courtney McMillian led the lawsuit. She argued that thousands of workers 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 layoffs reshaped company structure
The job cuts dismantled key teams, including trust and safety, human rights, and media relations. Musk’s actions were among the first large-scale workforce reductions in the tech sector.
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 boom.
Musk applied similar strategy in government
Earlier this year, Musk briefly headed President Donald Trump’s Department of Government Efficiency. The office was tasked with reducing costs and cutting jobs. Musk used the same approach there, overseeing thousands of federal layoffs.
