Twitter employees recently received an e-mail. The company’s message directed to its staff members relayed that the latter’s employee bonuses might get impacted by the ‘economic uncertainty’ the social networking and microblogging service provider is reportedly facing.
We are eager to share this US stock market-related news report with our readers about Twitter’s employees. We believe it will keep them updated regarding the important happenings in the US equity markets.
Based on the news report posted online by business, finance, and investment news outlet Fox Business, Twitter informed its workers last Friday, August 19, 2022 that they might get only half of their usual yearly bonuses.
This San Francisco, California-headquartered communications company affirmed that it is dealing with economic precariousness that might affect the staff members’ annual bonus.
Twitter ties its yearly bonuses for its employees to its performance against profitability and revenue targets.
The stock price of this social media company, which trades with the stock symbol TWTR on the New York Stock Exchange, closed at US$43.99 last Friday.
Twitter depends on revenue from advertisers. The latter are reportedly worried about the impacts of Tesla CEO Elon Musk’s planned buyout of the communications firm and the ongoing Russia-Ukraine armed conflict.
Ned Segal wrote the e-mail to the Twitter employees. He is Twitter’s chief financial officer. Segal told the staff members that the present challenges confronting Twitter would probably affect the yearly bonuses which the employees receive.
The workers who received the e-mail message cited that the bonus pool is presently at 50 percent of what it could be if Twitter met its financial aims. A Twitter representative confirmed the e-mail’s accuracy and declined further comment.
Twitter’s revenue declined for the first-ever instance since 2020. The social media service provider swung to a net loss per its most recent quarterly earnings report.
Advertisers appear to be taking a wait-and-see position. It is due to uncertainty regarding Musk’s acquisition of the social media company and the impact on the latter’s futures.
Twitter is involved in a legal fight to get Musk to seal his US$44-billion purchase of the communications company, which currently has a market capitalization of US$33.66 billion, per Yahoo! Finance.
Musk agreed to acquire Twitter last April. However, he has been attempting to get out of the buyout deal since last month.
Twitter intends to force the purchase, and the legal battle heads to court in October. We certainly feel sad for Twitter and its employees as matters seem to be hanging in the balance at this time.
We do hope Twitter gets to resolve the economic issues confronting it. In this manner, its workers will not be adversely affected, especially financially, during these highly inflationary and recessionary times.