Twitter to cut annual bonuses by 50% to employees

Twitter has informed employees that they will receive only half of their annual bonuses in the wake of challenging business conditions.
Twitter developersTwitter’s chief financial officer Ned Segal told employees in a letter that global market conditions would affect the annual bonuses they receive, with the bonus pool currently at 50 percent of what it could be if the company met its financial targets, The New York Times reported.

Parag Agrawal-led Twitter said the annual bonus figure could fluctuate even further throughout the year based on Twitter’s upcoming earnings.

Twitter employs more than 7,500 people globally. Last month, Twitter terminated jobs to 30 percent employees from its talent acquisition team.

Twitter earlier paused most hiring and backfills, except for business critical roles as determined by Staff members.

The micro-blogging platform is embroiled in a legal battle with Elon Musk after he terminated the $44 billion takeover deal over the actual number of bots on the platform.

Twitter said in July that it incurred $270 million net loss in the second quarter, owing to uncertainty related to the pending acquisition by Musk that adversely hit its advertising business.

Twitter also said that its Q2 revenue fell 1 percent to $1.18 billion, reflecting advertising industry headwinds associated with the macro-environment as well as uncertainty related to the pending acquisition of Twitter by an affiliate of Musk.