Twitter employees have been warned on Friday that they might receive only half of their typical annual bonus due to the economic uncertainty the social media company grapples with and that could impact the bonuses.
The revenue of Twitter, which is fighting a legal battle to force Elon Musk to go through with the $44 billion buyout, declined for the first time since 2020 and the company swung to a net loss, as the company’s most recent quarterly earnings report showed.
Musk has been trying to get out of the acquisition deal since July after agreeing to buy Twitter in April, but the case will only head to court in October.
Advertisers, which generate most of Twitter’s revenue, are stuck in a standby position due to the uncertainty regarding Musk’s acquisition and the impact that will have on the company’s futures.
The revenue of Twitter – which ties its annual bonus to its performance against revenue and profitability goals so the figure could fluctuate throughout the year, based on the earnings -has also been impacted by economic fears prompted by the war in Ukraine.
According to two employees who received the email message, Twitter’s chief financial officer Ned Segal said that these challenges have already affected the bonus pool which is currently at 50% of what it could be if the financial targets of the company were met.
In order to deal with the sluggish economy, the social media company which employs more than 7,500 people has recently slowed hiring, reduced its real estate footprint, and cut costs.
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