Elon Musk’s social media company, X (formerly Twitter), has reached a tentative settlement with thousands of former employees in a lawsuit worth $500 million over severance pay.

The dispute stems from the mass layoffs in 2022, shortly after Musk acquired Twitter for $44 billion and cut more than half of its workforce—around 6,000 employees worldwide—as part of sweeping cost-reduction measures.

In a joint court filing on Wednesday, both parties confirmed that they had reached an agreement “in principle” and were working on finalizing the terms. They have asked a US appeals court in San Francisco to delay an upcoming hearing to allow time to complete the process.

The case, led by Courtney McMillian, a former Twitter employee, alleged that workers were wrongfully denied the severance benefits promised under the company’s policy. While they were entitled to as much as six months’ salary plus other benefits, many said they received only one month’s pay—or nothing at all.

The layoffs at Twitter were among the most dramatic in the tech industry, targeting teams in trust and safety, human rights, and media operations. Musk’s aggressive cuts at X were seen as part of a larger trend, with major tech firms like Meta, Google, and Microsoft also downsizing after over-hiring during the pandemic.

Though the specific settlement details remain confidential, the deal still requires court approval before it can be finalized.

For many ex-staff, this tentative agreement could mark the end of a two-year legal battle and bring long-awaited closure after one of the most controversial corporate shake-ups in Silicon Valley.