Twitter will pay out, at best, only half of previously promised bonuses to employees due to the company's financial problems.
According to media sources within the company, Twitter recently told employees they could receive about half of their annual bonuses. Moreover, in case of deterioration of the situation in the company, payments may be even less.
Twitter explained to employees that the previously planned and board-approved cash pool for employee bonuses and incentives has halved since the beginning of the year due to the company's negative operating performance.
A Twitter spokesperson confirmed to the media that the bonus pool was being cut, but declined to comment.
Twitter recorded a net loss of $270 million in the second quarter of 2022 due to the crisis in advertising and Musk. The company's revenue amounted to $1.18 billion, which is 1% less than a year earlier. Previously, the company predicted its growth by 20%.
Twitter explained that the decline in financials was due to difficulties in the advertising sector associated with the macroeconomic situation, as well as uncertainty about the acquisition of the company by Musk and his recent refusal to do so. Twitter has disclosed ongoing expenses incurred by the company as a result of working out the merger deal. They amounted to $ 33 million and will continue to grow, as the company hired lawyers and sued Musk. Twitter is going to force him to buy the social network on initial terms, although the current capitalization is $30 billion, instead of the $44 billion proposed in April by Musk. Since the beginning of this year, the value of the company's shares has decreased by 8.5%.
During the summer, Twitter began to lose more ordinary employees who voluntarily leave due to a lack of understanding of the situation with the deal with Musk, increased stress, incompetent actions of the executive management, loss of faith in the development of the company and a negative atmosphere in both the company as a whole and within the company. commands. Now, against the backdrop of a reduction in bonuses and premiums, the process of developers leaving the company may worsen.
bbabo.Net