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 hearing. They said more time was needed to finalize the paperwork.
Lawsuit followed sweeping job cuts
The dispute began after Musk dismissed around 6,000 employees in 2022. That accounted for 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 commented publicly.
Court documents confirmed a settlement in principle had been reached. They also noted ongoing negotiations for a detailed agreement.
Settlement terms remain confidential
The deal’s conditions have not been disclosed. Court approval is required before the agreement becomes final.
Former employee Courtney McMillian led the lawsuit. She argued 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 operations
The mass job cuts dismantled key teams, including trust and safety, human rights, and media relations. Musk’s actions marked one of the first major workforce reductions in the tech sector.
Other tech companies soon followed. Google, Microsoft, and Facebook laid off tens of thousands of staff. These reductions came after years of heavy hiring during the pandemic’s digital surge.
Musk mirrored approach in government role
Earlier this year, Musk briefly headed President Donald Trump’s Department of Government Efficiency. The office aimed to cut spending and reduce jobs. Musk applied the same strategy there, overseeing thousands of federal layoffs.
