Elon Musk's X company is close to a settlement agreement on damages

Elon Musk's X company is approaching a settlement regarding a $500 million severance pay claim. This was reported by Zamin.uz.

According to TechCrunch, the claim was filed by former employees who were laid off after Musk acquired Twitter.

In 2022, after Elon Musk purchased Twitter, he laid off over 6,000 employees and reduced the company's workforce by approximately 80 percent. Although Musk offered three months' severance pay, the lawsuit states that many former employees did not receive full severance pay, and some received none at all.

During the court proceedings, Twitter's severance pay plan introduced in 2019 was discussed. According to this plan, senior employees were entitled to severance pay of up to six months' salary and an additional week's salary for each year of service.

Initially, the court ruled that Musk was not obligated to fulfill this plan, but after an appeal court decision, the parties are negotiating to resolve the issue. Currently, both sides are actively working towards reaching an agreement.

This case is considered significant in regulating relations between the company and former employees.