X settles severance claims of former Twitter employees – Personnel Today

Social media firm X and its owner Elon Musk have reached a settlement with some of its former employees who had sued for $500m (£373m) in severance pay. Details of the agreement are not yet public and will require the approval of the courts. In addition to the group action, there are more than 2,000 individual arbitration cases over unpaid severance stemming from Musk’s takeover of Twitter (now called X) in November 2022, after the billionaire dismissed more than 6,000 people, over half of the company’s workforce. “The parties have reached a settlement agreement in principle and began negotiating the terms of a long-form settlement agreement,” according to court documents filed by both sides. The lawsuit, led by former Twitter employee Courtney McMillian, claimed that about 6,000 people were wrongly denied benefits under the company’s severance plan. The firm had failed to provide payments as high as six months’ worth of salaries, among other terms, stated the claim. Twitter had only given sacked workers at most one month of severance pay, while some former employees did not receive anything, according to the lawsuit. The parties filed a joint request to delay an upcoming appeal hearing, scheduled for 17 September, to
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