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 delay a hearing. They said they needed extra time to complete the paperwork.
Lawsuit followed sweeping layoffs
The case began after Musk dismissed about 6,000 employees in 2022. That was more than half of the company’s workforce. Many of the affected staff challenged the severance terms in court.
So far, neither X nor the employees’ lawyers have issued public comments.
Court documents confirmed that a settlement in principle had been reached. They also noted that both sides are negotiating a full agreement.
Settlement terms remain confidential
The details of the deal have not been disclosed. Court approval is required before the settlement becomes final.
Former employee Courtney McMillian led the lawsuit. She argued thousands of staff were denied benefits promised under the severance plan.
The lawsuit stated employees should have received up to six months of salary. Instead, most received one month or less. Some got nothing.
Musk’s layoffs reshaped company structure
The cuts dismantled critical teams, including trust and safety, human rights, and media relations. Musk’s actions were among the first major 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 used similar tactics in government
Earlier this year, Musk briefly led President Donald Trump’s Department of Government Efficiency. The office aimed to reduce costs and cut jobs. Musk applied the same approach there, overseeing thousands of federal layoffs.
