The company, then known as Twitter, laid off almost 60% of its employees after Musk’s acquisition and did not honor severance agreements, according to a lawsuit.

In October 2022, Elon Musk officially took over X and moved quickly to lay off over 70 percent of the workforce. Former staffers subsequently filed a lawsuit claiming they received only a month of severance pay or, in some cases, no severance at all.

Elon Musk's X Corp has reached a tentative agreement to settle a lawsuit filed by former employees of the company who argued they were owed $500 million in severance pay.