Elon Musk and his company X have reached a settlement with former employees. The staff had sued for $500 million in unpaid severance.
The agreement was revealed in a court filing on Wednesday. Both parties asked the San Francisco appeals court to delay a scheduled hearing. They said more time was needed to complete the paperwork.
Lawsuit followed massive job cuts
The case arose after Musk dismissed about 6,000 employees in 2022. That accounted for more than half of the company’s workforce. Many of the affected workers challenged the severance packages in court.
Representatives of X and the employees’ lawyers have not provided public comment.
Court documents confirmed a settlement in principle had been reached. They also noted that negotiations for a detailed agreement are ongoing.
Settlement details remain secret
The terms 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 that 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 layoffs reshaped company operations
The job cuts dismantled key teams, including trust and safety, human rights, and media relations. Musk’s actions were among the first major cost-cutting moves in the tech industry.
Other tech firms soon followed. Google, Microsoft, and Facebook later laid off tens of thousands of employees. These reductions came after years of heavy hiring during the pandemic’s digital surge.
Musk applied same approach in government role
Earlier this year, Musk briefly led President Donald Trump’s Department of Government Efficiency. The agency was tasked with cutting costs and reducing staff. Musk followed the same strategy there, overseeing thousands of federal layoffs.
