Elon Musk's X company may reach a settlement regarding the $500 million compensation claim, TechCrunch reported. This case was filed by former employees who were laid off after the acquisition of Twitter.
After acquiring Twitter in 2022, Musk laid off more than 6,000 employees, reducing the company's workforce by nearly 80%. Although Musk offered three months' severance pay, many employees did not receive the full amount, and some received none at all, according to the lawsuit.
The court stated that Twitter's 2019 plan required senior employees to be paid severance of up to six months' salary and an additional week of salary for each year of service. The court initially ruled that Musk was not obligated to fulfill this plan, but after an appeal, the parties began negotiations for a settlement.
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