- Twitter chief financial officer Ned Segal warned employees on Friday that their bonuses could be half the maximum, according to the NYT.
- Segal said the company’s bonus pool was 50% of what it could be if financial targets were met, according to the NYT.
- Twitter employee bonuses are tied to the company’s financial performance, which has recently declined.
Twitter told employees on Friday that they were on track to earn half of their usual annual bonuses due to the company’s financial struggles, The New York Times reported.
In an email to staff, Twitter chief financial officer Ned Segal said the social media company’s bonus pool is currently at 50% of what it could be if financial targets are met, the NYT reported, citing as sources two employees who received the email.
Twitter did not immediately respond to Insider’s request for comment. The NYT said a Twitter spokesperson confirmed the veracity of the email and declined to comment further.
Twitter’s bonus warning comes as it tries to force Tesla and SpaceX CEO Elon Musk to complete his proposed $44 billion acquisition of the social media group – something Twitter pointed out in its second quarter earnings report as having had a negative impact on its finances.
Twitter, Meta, Alphabet and other platforms that rely at least in part on digital advertising to generate revenue are grappling with a slowing ad market amid recession fears.
Twitter employees receive annual bonuses based on the company’s financial performance, which could improve before they are finally paid out.
Twitter and Musk are at odds over their proposed $44 billion deal, which has resulted in a bitter legal battle between the parties. Musk says Twitter won’t provide him with the necessary details about the volume of spambots on its platform.
In its second-quarter earnings report, released on July 22, Twitter said “uncertainty” over Musk’s proposed takeover of the company, as well as headwinds from the advertising industry, have contributed to its first quarterly revenue decline since 2020. Twitter reported a second-quarter net loss of $270 million compared to net profit of $66 million in the same quarter of 2021.
Insider’s Lara O’Reilly exclusively reported on Friday that dozens of Google’s outside recruiters had just lost their jobs amid its hiring freeze.