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Twitter Warns Employees Their Bonuses May Be Cut In Half
Twitter warned employees on Friday that their annual bonuses may be cut in half due to the company’s financial performance and economic uncertainty, according to the New York Times.
The news come amid a legal battle with Elon Musk to complete a $44 billion sale, and after reporting declining quarterly revenues last month for the first time since 2020 – swinging the company to a net operating loss of $344 million (for which they blamed the Musk deal).
Advertisers, who generate most of Twitter’s revenue, have been skittish as economic fears over the war in Ukraine tamp down spending and Mr. Musk’s acquisition bid generates uncertainty about the company’s future.
Mr. Musk, who agreed to buy Twitter in April, is now trying to pull out of the deal. Twitter has sued him to force the acquisition. The company is set to face off with Mr. Musk in an October trial in Delaware Chancery Court. -NY Times
The company currently employees over 7,500 people – many of whom were livid after Musk announced his acquisition plans – and then disappointed when he indicated that he wanted to pull out of the deal.
In the Friday email, Twitter CFO Ned Segal told employees that the financial headwinds would probably affect annual bonuses – with the bonus pool currently at 50% of what it would be if the company had met its financial targets, according to two employees. That said, the figure can rise or fall based on the company’s earnings, as Twitter ties its annual bonuses to its performance against revenue and profitability goals.
The company has been slashing costs in order to cope with the financial and economic backdrop – slowing hiring and reducing its real estate footprint.
Tyler Durden
Sat, 08/20/2022 – 12:00
