Twitter says the company is dealing with economic uncertainty and that might impact employee bonuses.
Employees were told on Friday that they might receive only half of their typical annual bonuses, according to The New York Times.
In the company’s most recent quarterly earnings report, revenue declined for the first time since 2020 and the company swung to a net loss.
Twitter is involved in a legal battle to get Elon Musk to complete his $44 billion purchase of the company.
Advertisers seem to be taking a wait-and-see stand due to uncertainty about Musk’s acquisition and the impact on the company’s futures.
Advertising generates most of Twitter’s revenue which has also been impacted by economic fears over the war in Ukraine.
Musk agreed to buy Twitter in April and has been trying to get out of the deal since July.
In the email to employees, Ned Segal, Twitter’s chief financial officer, said these challenges would probably affect the annual bonuses that they receive, with the bonus pool currently at 50 percent of what it could be if the company met its financial targets, according to two employees who received the message.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TWTR | TWITTER INC. | 43.99 | +0.13 | +0.30% |
| TSLA | TESLA INC. | 890.00 | -18.61 | -2.05% |
The company ties its annual bonuses to its performance against revenue and profitability goals.
A Twitter spokesman confirmed the accuracy of the email and declined further comment.
