August 22, 2025 • 16 mins
A federal lawsuit against Elon Musk’s X Corp has ended with a settlement that requires the company to pay $500 million in severance to thousands of former Twitter employees. The lawsuit, filed in the U.S. District Court for the Northern District of California, accused X of violating federal labor laws by refusing to provide severance pay after Musk’s acquisition of Twitter in October 2022. The company, now known simply as “X,” terminated over half of its workforce in the weeks after Musk completed his $44 billion purchase.
How did a deal that was supposed to redefine social media turn into a legal battle over unpaid severance? The question surfaces from the scale and speed of Twitter’s layoffs and the way those exits were handled. When Musk took control of Twitter, he slashed roughly 6,000 jobs across the company. Many of those employees said they were promised specific severance packages under the previous ownership. The lawsuit, led by former Twitter employee Courtney McMillian, alleged that Musk and his team chose to ignore those agreements and instead offered significantly reduced exit terms.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:01):
Hey, everybody. Welcome back to the Elon Musk
Podcast. This is a show where we discuss
the critical crossroads, the Shape, SpaceX, Tesla X, The
Boring Company, and Neurolink. I'm your host, Will Walden.
A federal lawsuit against Elon Musk's X Corp has ended with a
settlement that requires a company to pay $500 million in
(00:25):
severance to thousands of formerTwitter employees.
The lawsuit, filed in the US District Court for the Northern
District of California, accused X of violating federal labor
laws by refusing to provide severance pay after Musk's
acquisition of Twitter back in October of 2022.
The company now is X terminated over half of its workforce in
(00:47):
the weeks after Musk completed his $44 billion purchase.
Now, how did a deal that was supposed to redefine social
media as we know, it turned intoa legal battle over unpaid
severance and millions of dollars, hundreds of millions of
dollars to the employees should have just paid him in the 1st
place. Right now, the question surfaces
(01:09):
from the scale and speed of Twitter's layoffs.
They just cut everybody out. And the way that those exits
were handled, when Musk took control of Twitter, he slashed
roughly 6000 jobs across the company within days.
Many of those employees said they were promised specific
severance packages under the previous ownership.
Now, the lawsuit led by former Twitter employee Courtney
(01:30):
Mcmillion, alleged that Musk andhis team chose to ignore those
agreements and instead offered significantly reduced exit
terms. Mcmillion served as Twitter's
former head of Total Rewards, which included overseeing
employee benefits and severance.She filed the class action
lawsuit July of 2023, stating that the company's leadership
(01:50):
had unilaterally decided to discard the company's previous
severance policy, and under the old policy, senior employees
were entitled to six months of base pay plus equity.
Most other workers were supposedto receive at least two months
of pay, and the complaint alleged that laid off staff
received only a fraction of thatand in some cases, no money
(02:12):
whatsoever. Now, the core legal issue
revolved around the Employee Retirement Income Security Actor
ERISA, a federal statute that governs employer benefit plans.
The lawsuit argued that Twitter had a formal severance plan and
that X Corp violated ERISA by not honoring it.
The settlement ends that legal challenge without requiring Musk
(02:34):
risk company to admit wrongdoing.
Still, the $500 million payout adds to the financial weight
Musk took on when he acquired the company with $13 billion in
debt. Now, the case was assigned to
U.S. District Judge Trina Thompson,
who approved the confidential agreement to resolve the
dispute. While the full terms of the
(02:55):
settlement remains sealed, courtfilings confirm the $500 million
figure. Ex Corp has not issued a public
statement. Of course we asked them.
They didn't say anything. Of course they didn't.
And Musk as well, hasn't responded to our comments or to
our asks about what's going on now.
The company has consistently denied any wrongdoing and tried
(03:18):
to compel arbitration for several of the claims, but the
court allowed the clash action suit to proceed.
This is also not the only legal fight must connects court face
over layoffs. Several other lawsuits related
to employment practices after the acquisition are still
pending. One of those suits focuses on
discrimination against women during the layoffs, while
(03:39):
another accuses the company of failing to provide the legally
required 60 day notice under theWarren Act.
WERN legal experts say the severance dispute illustrates
how companies can face long termconsequences when they abandoned
established employment agreements during transitions.
Sevens pay is governed not just by contracts, but also by
(04:00):
federal statutes ensure transparency and fairness.
And while Musk frame the layoffsas necessary to rescue a
financial struggling company, courts still expect companies to
follow legal obligations during restructuring.
The layoffs and the way they were handled have had lasting
effects on X's corporate reputation.
Former employees have spoken publicly about how the process
(04:22):
unfolded, describing confusion, very poor communication and just
sudden firing some terminations.Some workers learned they had
been let go by only being lockedout of their accounts overnight.
You know what, this happened to me, and this is a little
personal note due to one of the companies that I worked for.
(04:45):
They went under. I was working for an action
sports company in Oceanside, CA and they had a web, the
e-commerce store, and I was headof e-commerce at that company.
We were doing well. The e-commerce site was doing
great. We had good numbers, but the
boss wanted to focus on the brick and mortar store only.
(05:09):
So what he did, we had a staff of five people.
It's myself. And then I was the head and
there are four people working for me.
And they were the people that were adding the products to the
store, taking photos, doing all that stuff.
And I was managing everybody. So lead of e-commerce at that
site. And I'm not going to call them
out or tell them tell you they were because that's a not the
(05:32):
right thing to do. But one day we were all locked
out of our accounts. Never told me, never had an
honest conversation about it, never said, hey, I just want to,
you know, I just want to lock upthe e-commerce store, go back to
brick and mortar. You can still work at the brick
and mortar if you want to, But you know, we're going to shut
down the E com because I just don't like it.
(05:55):
He didn't want to do e-commerce at all.
He never did, but he started in the e-commerce store because he
wanted to make a lot of money and we were making good money
for the e-commerce store. We're doing good.
The numbers were good. We were up and to the right as
they say. So we were making a profit and
he just shut it down one night, locked us all out of our
accounts. I had no idea.
I couldn't even e-mail the guy, so I had to go to the store and
(06:16):
talk to him because he didn't have a cell phone.
Which is funny because this is like the height likethe.com dot
com e-commerce height, you know,before Amazon took took over
everything, you know, so I had to go to the store and be like,
Hey, what's going on? And the boss just told me
(06:37):
straight up, Hey, we're shuttingdown e-commerce.
I was like, well, you should have told us, you know, like I
could have looked for another job or whatever.
He said, well, it's not really my not really my job to, you
know, see what happens to you next.
I was like, wow, you're an asshole.
Like, wow, George, you're a slimy and he was a slimy.
(06:59):
Listen, I'm going to be honest with you guys because I think
you deserve it. And over the thousands of
episodes I've done here, I thinkwe've got to know each other
pretty well. And I'm going to be honest with
you. I'm going to speak from my
heart. This guy was a greasy son of a
bitch. He was a piece of garbage.
(07:20):
He treated everybody unfairly. He was mean to people.
He's a mean, mean person. So I, I left there confused more
than anything. So there was no restructuring.
It was just, he just cut off thee-commerce.
I was more confused. I wasn't upset as much as I was
(07:41):
like, well, you're a piece of shit anyway, so I don't want to
work for you anymore. See you later, you stupid idiot.
And then I, you know, then I when I got another job within a
week, so it was not a big deal, but and I actually got paid
more. I got paid almost double in the
next place. Guy was healthily underpaying me
for doing what I was doing. So luckily for me, you know, you
(08:04):
shut down the E Comm site, but it was similar, you know, like
you'd go, you think you're goinginto work things shut down.
What are you supposed to do? You can't even check your
e-mail, you can't send DMS, There's no slack at that time.
There's nothing. I just shut you down.
And I was doing some freelance work just recently actually for
a company. I had a three month sever or not
(08:27):
severance, a three month contract with them.
And I was doing some front end work and we were going to
connect the back end, front end web development.
We're going to connect the back end in about 3 months.
I had a three month time frame. Literally the job was, and this
is we're getting away from you alot, a little bit, but I'm going
to I'm going to circle back. I promise.
After about 3 months, we were supposed to connect the front
(08:48):
end to the back end. The back end wasn't done.
So I was also promised, listen to this.
This is even better. A little rug pull here.
My experience is vast. I'm not, you know, senior level
high end front end web developer.
Been doing this for 20 years. I know my shit, right?
(09:10):
These people said to me before Istarted this contract, hey,
we're going to do this contract.We do 90 days and after those 90
days we're going to really look into we need a new CTO, right?
And you're the like a perfect fit for our company.
(09:31):
And I was sold. Do this for three months, work
your ass off, get to know the team, do crazy shit.
They had me waking up at 3:00 inthe morning one night to restart
some stupid servers on the otherside of the world.
Because somebody who is the CTO at the time decided it was a
(09:53):
great idea from somebody to havesomebody from North America on
the East Coast wake up at 3:00 in the morning and restart some
servers that literally takes 3 minutes to do instead of
instead. And I'm a grown person.
I don't need to prove myself anymore doing this shit.
(10:14):
So I was chosen by them to do this because somebody who is
also in the time zone, they didn't want to do it.
And for that time zone, it was like 6 in the afternoon instead
(10:35):
of three in the morning. So the CTO at the time was like,
oh, you know, Will can do it, put that on me.
And I was like, you know what, I'm working towards the CTCTO
thing. I got to prove myself a little
bit. I got to show him I'm down, you
know, because if I'm going to have people working under me,
they got to know that I'm there for him, right?
That's what a good leader does. You, you lead by example.
So I was like, hell yeah, dude, 3:00 in the morning.
(10:58):
You know what they did after three months?
Shut me out of the system completely.
Shut me up. Anyway, they are also pieces of
shit. So I just wanted to let you all
know that it doesn't just happenin X or Twitter.
And Musk isn't the only person that does this.
(11:19):
You know, there were no courts involved.
There's nothing involved. There is no, you know, there's
no severance for me. I was on a contract for three
months and then when that contract was done and we had
great discussions, great discussions about what's next.
You know, what are your next steps?
Let's get you set up. You know everything.
I was on my path to being the CTO of this company and they
(11:45):
were using me come to find out, to get this front at the front
end of this very complicated system built out in three months
as fast as possible. This is like a four man job.
I did it by myself, not braggingor any shit like that, but I'm
just saying I did it because there was the, the opportunity I
(12:12):
got along with everybody there. By the way, everybody was in the
CEO of the company at the time was like, dude, we got you.
You're going, you're doing this.We got you set up and you're
going to be the CTO like the whole time.
Never even talked to me about anything I was doing wrong or
that they didn't want me to be that, you know, want me to be
CTO or anything like that. Nothing.
(12:33):
No communication. So I can see from these people's
perspectives, they got the rug pulled out from underneath them.
They got screwed over. They had a contract in place
with Twitter, Elon Musk joint that contract away from them and
that was it. They couldn't do anything.
There's no recourse until they did this lawsuit.
(12:57):
The way they were handled that where they handled these
lawsuits was horrible, $500 million settlement also arrives
as X struggles with advertising and platform stability.
Right now, they're still struggling with advertising.
Ever since Musk took over, the company faced reduced ad sales.
(13:17):
Since day one of Musk, there's not much content.
There's no content moderation anymore, and there's a sharp
decline in its valuation. I mean, Grok's on it now, so
maybe Grok will moderate things,but I haven't seen it happen.
Musk bought Twitter for $44 billion, and late 2023, Fidelity
(13:40):
estimated its value 12 billion. So it lost 20 or about $30
billion in value. So see what you know, you can
treat people well, that's all. You could have just given these
people the money. 500 million. Like, of course he's trying to
(14:03):
save money and trying to save free speech or whatever,
whatever you believe. You know, he's trying to reshape
X into an everything app that goes way beyond social media.
Grok is part of it and wants to take payments, wants to do
basically he wants to do everything that Facebook does,
but different with a different name.
Facebook does payments, Facebookdoes calling.
(14:27):
They you can hail a ride on Uberor through Facebook if you get
the right app or whatever. So or Meta, sorry.
So it's basically the WhatsApp slash everything app slash
everything Facebook does. Anyway, that's what Musk is
trying to do with X. And there's financial burdens
that may hinder efforts to rebuild morale.
(14:47):
Of course, in this lawsuit, likeyou see how he treats people and
they're going to, they won. These people won and they
defeated Elon Musk. And you know, a mass difficult
or mass layoff is very difficult.
But you can't break the law whenyou do it.
These are legal agreements that these people signed with Twitter
(15:09):
back when it was Twitter. You can't break those legal
agreements to execute these layoffs, you know have lost
lasting consequences plus hundreds of millions of dollars.
Now you're paying that money now.
So payment distribution will begin following final judicial
(15:30):
approval with a total sediment split among eligible ex
employees based on tenure and salary.
And while it remains unclear exactly how much each former
employee will receive, the average payout is expected to
fall between a few thousand to 10s of thousands of dollars,
depending on their roles and seniority.
Musk has frequently criticized the US labor laws as well,
(15:52):
spoken against what he describesas over regulation.
That's why he left California. But in this case, federal
employment law imposed a cost that cannot be ignored.
Settlement closes one major chapter in the legal fallout of
Musk's Twitter acquisition, but many unresolved disputes remain
(16:14):
in the court system. Hey, thank you so much for
listening today. I really do appreciate your
support. If you could take a second and
hit the subscribe or the follow button on whatever podcast
platform that you're listening on right now, I greatly
appreciate it. It helps out the show
tremendously and you'll never miss an episode.
And each episode is about 10 minutes or less to get you
(16:36):
caught up quickly. And please, if you want to
support the show even more, go to patreon.com/stagezero and
please take care of yourselves and each other and I'll see you
tomorrow.
Hey, everybody. Welcome back to the Elon Musk
Podcast. This is a show where we discuss
the critical crossroads, the Shape, SpaceX, Tesla X, The
Boring Company, and Neurolink. I'm your host, Will Walden.
A federal lawsuit against Elon Musk's X Corp has ended with a
settlement that requires a company to pay $500 million in
(00:25):
severance to thousands of formerTwitter employees.
The lawsuit, filed in the US District Court for the Northern
District of California, accused X of violating federal labor
laws by refusing to provide severance pay after Musk's
acquisition of Twitter back in October of 2022.
The company now is X terminated over half of its workforce in
(00:47):
the weeks after Musk completed his $44 billion purchase.
Now, how did a deal that was supposed to redefine social
media as we know, it turned intoa legal battle over unpaid
severance and millions of dollars, hundreds of millions of
dollars to the employees should have just paid him in the 1st
place. Right now, the question surfaces
(01:09):
from the scale and speed of Twitter's layoffs.
They just cut everybody out. And the way that those exits
were handled, when Musk took control of Twitter, he slashed
roughly 6000 jobs across the company within days.
Many of those employees said they were promised specific
severance packages under the previous ownership.
Now, the lawsuit led by former Twitter employee Courtney
(01:30):
Mcmillion, alleged that Musk andhis team chose to ignore those
agreements and instead offered significantly reduced exit
terms. Mcmillion served as Twitter's
former head of Total Rewards, which included overseeing
employee benefits and severance.She filed the class action
lawsuit July of 2023, stating that the company's leadership
(01:50):
had unilaterally decided to discard the company's previous
severance policy, and under the old policy, senior employees
were entitled to six months of base pay plus equity.
Most other workers were supposedto receive at least two months
of pay, and the complaint alleged that laid off staff
received only a fraction of thatand in some cases, no money
(02:12):
whatsoever. Now, the core legal issue
revolved around the Employee Retirement Income Security Actor
ERISA, a federal statute that governs employer benefit plans.
The lawsuit argued that Twitter had a formal severance plan and
that X Corp violated ERISA by not honoring it.
The settlement ends that legal challenge without requiring Musk
(02:34):
risk company to admit wrongdoing.
Still, the $500 million payout adds to the financial weight
Musk took on when he acquired the company with $13 billion in
debt. Now, the case was assigned to
U.S. District Judge Trina Thompson,
who approved the confidential agreement to resolve the
dispute. While the full terms of the
(02:55):
settlement remains sealed, courtfilings confirm the $500 million
figure. Ex Corp has not issued a public
statement. Of course we asked them.
They didn't say anything. Of course they didn't.
And Musk as well, hasn't responded to our comments or to
our asks about what's going on now.
The company has consistently denied any wrongdoing and tried
(03:18):
to compel arbitration for several of the claims, but the
court allowed the clash action suit to proceed.
This is also not the only legal fight must connects court face
over layoffs. Several other lawsuits related
to employment practices after the acquisition are still
pending. One of those suits focuses on
discrimination against women during the layoffs, while
(03:39):
another accuses the company of failing to provide the legally
required 60 day notice under theWarren Act.
WERN legal experts say the severance dispute illustrates
how companies can face long termconsequences when they abandoned
established employment agreements during transitions.
Sevens pay is governed not just by contracts, but also by
(04:00):
federal statutes ensure transparency and fairness.
And while Musk frame the layoffsas necessary to rescue a
financial struggling company, courts still expect companies to
follow legal obligations during restructuring.
The layoffs and the way they were handled have had lasting
effects on X's corporate reputation.
Former employees have spoken publicly about how the process
(04:22):
unfolded, describing confusion, very poor communication and just
sudden firing some terminations.Some workers learned they had
been let go by only being lockedout of their accounts overnight.
You know what, this happened to me, and this is a little
personal note due to one of the companies that I worked for.
(04:45):
They went under. I was working for an action
sports company in Oceanside, CA and they had a web, the
e-commerce store, and I was headof e-commerce at that company.
We were doing well. The e-commerce site was doing
great. We had good numbers, but the
boss wanted to focus on the brick and mortar store only.
(05:09):
So what he did, we had a staff of five people.
It's myself. And then I was the head and
there are four people working for me.
And they were the people that were adding the products to the
store, taking photos, doing all that stuff.
And I was managing everybody. So lead of e-commerce at that
site. And I'm not going to call them
out or tell them tell you they were because that's a not the
(05:32):
right thing to do. But one day we were all locked
out of our accounts. Never told me, never had an
honest conversation about it, never said, hey, I just want to,
you know, I just want to lock upthe e-commerce store, go back to
brick and mortar. You can still work at the brick
and mortar if you want to, But you know, we're going to shut
down the E com because I just don't like it.
(05:55):
He didn't want to do e-commerce at all.
He never did, but he started in the e-commerce store because he
wanted to make a lot of money and we were making good money
for the e-commerce store. We're doing good.
The numbers were good. We were up and to the right as
they say. So we were making a profit and
he just shut it down one night, locked us all out of our
accounts. I had no idea.
I couldn't even e-mail the guy, so I had to go to the store and
(06:16):
talk to him because he didn't have a cell phone.
Which is funny because this is like the height likethe.com dot
com e-commerce height, you know,before Amazon took took over
everything, you know, so I had to go to the store and be like,
Hey, what's going on? And the boss just told me
(06:37):
straight up, Hey, we're shuttingdown e-commerce.
I was like, well, you should have told us, you know, like I
could have looked for another job or whatever.
He said, well, it's not really my not really my job to, you
know, see what happens to you next.
I was like, wow, you're an asshole.
Like, wow, George, you're a slimy and he was a slimy.
(06:59):
Listen, I'm going to be honest with you guys because I think
you deserve it. And over the thousands of
episodes I've done here, I thinkwe've got to know each other
pretty well. And I'm going to be honest with
you. I'm going to speak from my
heart. This guy was a greasy son of a
bitch. He was a piece of garbage.
(07:20):
He treated everybody unfairly. He was mean to people.
He's a mean, mean person. So I, I left there confused more
than anything. So there was no restructuring.
It was just, he just cut off thee-commerce.
I was more confused. I wasn't upset as much as I was
(07:41):
like, well, you're a piece of shit anyway, so I don't want to
work for you anymore. See you later, you stupid idiot.
And then I, you know, then I when I got another job within a
week, so it was not a big deal, but and I actually got paid
more. I got paid almost double in the
next place. Guy was healthily underpaying me
for doing what I was doing. So luckily for me, you know, you
(08:04):
shut down the E Comm site, but it was similar, you know, like
you'd go, you think you're goinginto work things shut down.
What are you supposed to do? You can't even check your
e-mail, you can't send DMS, There's no slack at that time.
There's nothing. I just shut you down.
And I was doing some freelance work just recently actually for
a company. I had a three month sever or not
(08:27):
severance, a three month contract with them.
And I was doing some front end work and we were going to
connect the back end, front end web development.
We're going to connect the back end in about 3 months.
I had a three month time frame. Literally the job was, and this
is we're getting away from you alot, a little bit, but I'm going
to I'm going to circle back. I promise.
After about 3 months, we were supposed to connect the front
(08:48):
end to the back end. The back end wasn't done.
So I was also promised, listen to this.
This is even better. A little rug pull here.
My experience is vast. I'm not, you know, senior level
high end front end web developer.
Been doing this for 20 years. I know my shit, right?
(09:10):
These people said to me before Istarted this contract, hey,
we're going to do this contract.We do 90 days and after those 90
days we're going to really look into we need a new CTO, right?
And you're the like a perfect fit for our company.
(09:31):
And I was sold. Do this for three months, work
your ass off, get to know the team, do crazy shit.
They had me waking up at 3:00 inthe morning one night to restart
some stupid servers on the otherside of the world.
Because somebody who is the CTO at the time decided it was a
(09:53):
great idea from somebody to havesomebody from North America on
the East Coast wake up at 3:00 in the morning and restart some
servers that literally takes 3 minutes to do instead of
instead. And I'm a grown person.
I don't need to prove myself anymore doing this shit.
(10:14):
So I was chosen by them to do this because somebody who is
also in the time zone, they didn't want to do it.
And for that time zone, it was like 6 in the afternoon instead
(10:35):
of three in the morning. So the CTO at the time was like,
oh, you know, Will can do it, put that on me.
And I was like, you know what, I'm working towards the CTCTO
thing. I got to prove myself a little
bit. I got to show him I'm down, you
know, because if I'm going to have people working under me,
they got to know that I'm there for him, right?
That's what a good leader does. You, you lead by example.
So I was like, hell yeah, dude, 3:00 in the morning.
(10:58):
You know what they did after three months?
Shut me out of the system completely.
Shut me up. Anyway, they are also pieces of
shit. So I just wanted to let you all
know that it doesn't just happenin X or Twitter.
And Musk isn't the only person that does this.
(11:19):
You know, there were no courts involved.
There's nothing involved. There is no, you know, there's
no severance for me. I was on a contract for three
months and then when that contract was done and we had
great discussions, great discussions about what's next.
You know, what are your next steps?
Let's get you set up. You know everything.
I was on my path to being the CTO of this company and they
(11:45):
were using me come to find out, to get this front at the front
end of this very complicated system built out in three months
as fast as possible. This is like a four man job.
I did it by myself, not braggingor any shit like that, but I'm
just saying I did it because there was the, the opportunity I
(12:12):
got along with everybody there. By the way, everybody was in the
CEO of the company at the time was like, dude, we got you.
You're going, you're doing this.We got you set up and you're
going to be the CTO like the whole time.
Never even talked to me about anything I was doing wrong or
that they didn't want me to be that, you know, want me to be
CTO or anything like that. Nothing.
(12:33):
No communication. So I can see from these people's
perspectives, they got the rug pulled out from underneath them.
They got screwed over. They had a contract in place
with Twitter, Elon Musk joint that contract away from them and
that was it. They couldn't do anything.
There's no recourse until they did this lawsuit.
(12:57):
The way they were handled that where they handled these
lawsuits was horrible, $500 million settlement also arrives
as X struggles with advertising and platform stability.
Right now, they're still struggling with advertising.
Ever since Musk took over, the company faced reduced ad sales.
(13:17):
Since day one of Musk, there's not much content.
There's no content moderation anymore, and there's a sharp
decline in its valuation. I mean, Grok's on it now, so
maybe Grok will moderate things,but I haven't seen it happen.
Musk bought Twitter for $44 billion, and late 2023, Fidelity
(13:40):
estimated its value 12 billion. So it lost 20 or about $30
billion in value. So see what you know, you can
treat people well, that's all. You could have just given these
people the money. 500 million. Like, of course he's trying to
(14:03):
save money and trying to save free speech or whatever,
whatever you believe. You know, he's trying to reshape
X into an everything app that goes way beyond social media.
Grok is part of it and wants to take payments, wants to do
basically he wants to do everything that Facebook does,
but different with a different name.
Facebook does payments, Facebookdoes calling.
(14:27):
They you can hail a ride on Uberor through Facebook if you get
the right app or whatever. So or Meta, sorry.
So it's basically the WhatsApp slash everything app slash
everything Facebook does. Anyway, that's what Musk is
trying to do with X. And there's financial burdens
that may hinder efforts to rebuild morale.
(14:47):
Of course, in this lawsuit, likeyou see how he treats people and
they're going to, they won. These people won and they
defeated Elon Musk. And you know, a mass difficult
or mass layoff is very difficult.
But you can't break the law whenyou do it.
These are legal agreements that these people signed with Twitter
(15:09):
back when it was Twitter. You can't break those legal
agreements to execute these layoffs, you know have lost
lasting consequences plus hundreds of millions of dollars.
Now you're paying that money now.
So payment distribution will begin following final judicial
(15:30):
approval with a total sediment split among eligible ex
employees based on tenure and salary.
And while it remains unclear exactly how much each former
employee will receive, the average payout is expected to
fall between a few thousand to 10s of thousands of dollars,
depending on their roles and seniority.
Musk has frequently criticized the US labor laws as well,
(15:52):
spoken against what he describesas over regulation.
That's why he left California. But in this case, federal
employment law imposed a cost that cannot be ignored.
Settlement closes one major chapter in the legal fallout of
Musk's Twitter acquisition, but many unresolved disputes remain
(16:14):
in the court system. Hey, thank you so much for
listening today. I really do appreciate your
support. If you could take a second and
hit the subscribe or the follow button on whatever podcast
platform that you're listening on right now, I greatly
appreciate it. It helps out the show
tremendously and you'll never miss an episode.
And each episode is about 10 minutes or less to get you
(16:36):
caught up quickly. And please, if you want to
support the show even more, go to patreon.com/stagezero and
please take care of yourselves and each other and I'll see you
tomorrow.
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