As per many media reports, the lawsuit alleges that Twitter executives, including former chief financial officer Ned Segal, guaranteed employees that they would receive 50 percent of their target bonus amounts. Unfortunately, none of these assurances materialised. Hence, many discontented employees filed a lawsuit in a federal court in San Francisco.
The lawsuit further claims that Twitter typically disburses its cash performance bonuses on an annual basis. However, following Elon Musk’s acquisition of the company in October, the company allegedly declined to provide bonuses to employees who remained employed during the first quarter of 2023.
According to a report from Bloomberg, the lawsuit was filed as a proposed class-action complaint, representing both current and former Twitter employees who were employed during the first quarter of 2023 and did not receive their bonuses as promised.
Mark Schobinger, the main plaintiff in the case, previously held the position of senior director of compensation at Twitter until the previous month. The plaintiff’s legal representatives are pursuing class action status to represent both current and former employees of Twitter. Furthermore, the lawsuit also revealed that the amount of bonuses owed by Twitter amounts to tens of millions of dollars.
Under Elon Musk’s leadership, Twitter has encountered numerous difficulties. The company has witnessed a significant decline of over 50 per cent in advertising revenue due to brands losing faith in its capacity to effectively remove violent, pornographic, and hateful content. Consequently, there has been a substantial reduction in the workforce, with layoffs and resignations causing the number of employees to decrease by more than 75 per cent.