The New York Times reported that Twitter informed employees on Friday that they are expected to receive only half of their typical annual bonuses due to the company’s financial difficulties.
According to a report by The NYT, which cited two employees who received the email as sources, Twitter CFO Ned Segal claimed in an email to staff that the social media company’s bonus pool was currently at 50% of what it could be if financial targets were being met.
Insider’s request for a comment from Twitter did not immediately receive a response. The NYT reported that a Twitter spokesperson denied further comment while confirming the accuracy of the email.
Twitter’s bonus warning comes as the company tries to persuade Tesla and SpaceX CEO Elon Musk to complete his proposed $44 billion acquisition of the social media company, which Twitter highlighted in its second-quarter earnings report as having harmed its finances.
Twitter, Meta, Alphabet, and other platforms that rely on digital advertising for revenue are dealing with a drop in the ad market amid recession fears.
Employees at Twitter receive annual bonuses based on the company’s financial performance, which may improve before they are paid out.
Twitter and Musk are at odds over their proposed $44 billion merger, which has resulted in a contentious legal battle between the two companies. Musk claims Twitter will not provide him with the necessary information about the number of spam bots on its platform.
Twitter said in its second-quarter earnings report, published on July 22, that “uncertainty” over Musk’s proposed takeover, as well as advertising industry headwinds, contributed to the company’s first quarterly revenue decline since 2020. Twitter reported a net loss of $270 million in the second quarter, compared to a net income of $66 million in the same quarter in 2021.
Insider’s Lara O’Reilly exclusively reported Friday that dozens of Google’s external recruiters were recently laid off due to the company’s hiring freeze.