The article references the New York TImes (paywall):
But the relevant part is here:
Mr. Musk’s team is now reconsidering whether it should pay some of those months, according to two people familiar with the discussions, or just face lawsuits from disgruntled former employees. Many former employees still have not received any paperwork formalizing their separation from Twitter, five people said. Mr. Musk has already refused to pay millions of dollars in exit packages to executives he claims were terminated “for cause.”
So yes, it's all hearsay for now, but what a surprise! . Some law firm out there is going to make a ki----g on the class action suit. That being said, federal and California law for WARN act enforcement only give redress (payment) for 60 days, not the 90 days that were promised. This may be Musk's way of walking back his promise (what else is new?). On the positive, California law penalizes an employer that violates WARN by $500/day/employee + medical expenses incurred by employees that would have been covered under an employee benefit plan.
Of course, there is also the high probability that the laid-off folks starve before they see a penny. My advice, for what it's worth - Take a deep breath and treat finding a new job as your present job. This is NOT a vacation. As the article about the VA hiring folk illustrates, you should look outside of "traditional tech." Plenty of people are still hiring, just need to find the right opportunity (NOTE BELOW). Hopefully you have savings, but don't assume you're going to get any moneys right now beyond unemployment insurance. Lawyer up as a group, hopefully you're still in contact with other ex-employees. Good Luck!
NOTE to those switching industries - Research what your target company actually does, think about how YOU can be an ASSET to THEM. What have you done that is relevant to their work, their needs? I know this sounds obvious, but I'm constantly amazed at how many people forget this when they are interviewing.