In a significant development, Elon Musk's social media venture, X, has come to a preliminary settlement with former employees who initiated legal action over unpaid severance following mass layoffs.
Settlement Reached Between Elon Musk's X and Laid-off Employees
Settlement Reached Between Elon Musk's X and Laid-off Employees
Former Twitter employees claim violation of severance agreements in a class-action lawsuit.
The agreement was disclosed in a court filing, where both X and the ex-employees sought to delay an upcoming court hearing to finalize the settlement details. This lawsuit originated when Musk implemented drastic cuts, resulting in approximately 6,000 employees, or more than half of X's workforce, being terminated in 2022 as part of a cost-reduction strategy.
Leading the lawsuit, former employee Courtney McMillian argued that many were denied their entitled severance benefits, which were stipulated to cover up to six months of salary. In contrast, some employees received only a month’s pay, with others receiving no compensation post-layoff. This legal battle represents only one instance of the broader trend in tech layoffs, where giants like Facebook and Google have also reduced their staff following the pandemic-driven hiring surge.
Critics have pointed out Musk's pattern of job cuts, notably during his brief appointment at the U.S. government's Department of Government Efficiency, where he similarly aimed at budget reductions and workforce downsizing. The details of the settlement remain under wraps until court approval is secured.
This settlement could mark a turning point in addressing corporate responsibility following significant workforce reductions amid economic shifts in the technology sector.
Leading the lawsuit, former employee Courtney McMillian argued that many were denied their entitled severance benefits, which were stipulated to cover up to six months of salary. In contrast, some employees received only a month’s pay, with others receiving no compensation post-layoff. This legal battle represents only one instance of the broader trend in tech layoffs, where giants like Facebook and Google have also reduced their staff following the pandemic-driven hiring surge.
Critics have pointed out Musk's pattern of job cuts, notably during his brief appointment at the U.S. government's Department of Government Efficiency, where he similarly aimed at budget reductions and workforce downsizing. The details of the settlement remain under wraps until court approval is secured.
This settlement could mark a turning point in addressing corporate responsibility following significant workforce reductions amid economic shifts in the technology sector.
