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.

Former Twitter employees argued a 2019 severance plan guaranteed more pay than the company offered after Elon Musk's acquisition.