Amid economic downturn, Twitter communicated to its employees in an email that they will receive only half of their annual bonus. The Company has blamed bad financial performance for the cut.
Last month, Twitter reported a revenue dip for the first time after 2020. The revenue for the second quarter for Twitter was $1.18 billion compared to $1.19 billion a year earlier.
In an email to employees, Ned Segal, chief financial officer, informed that the poor financial performance will impact the annual bonus pool of the Company, which is currently at 50 per cent.
There has been a string of bad news for the employees of Twitter for some time now. In the month of July, Twitter had laid off 30 per cent of its talent-acquisition team. It is re-prioritising the remaining team of talent-acquisition professionals. The layoff happened right after the Company announced a slowdown in hiring in May 2022.
Twitter is already fighting a legal battle with Elon Musk, CEO, Tesla, who was supposed to buy Twitter in a $44 billion deal. However, Musk accused the Company of concealing information and not disclosing the exact number of users that are fake or bots.
This development came close on the heels of Twitter employees making their disapproval of Musk’s intended takeover of Twitter clear.
Twitter staff had been dealing with a lot of uncertainty when Musk had revealed the need to weed out some employees to bring things back on track. Now, the deal itself lacks certainty.