Twitter emails employees "Bonus this year may be cut in half"

[Photo by Reuters Yonhap News]

[Asia Economy Reporter Byunghee Park] Twitter is expected to cut employee bonuses to half of last year's level due to poor performance.

According to the New York Times (NYT) on the 19th (local time), Twitter sent an email to employees stating that this year's bonuses could be reduced by half. Twitter Chief Financial Officer (CFO) Ned Segal mentioned in the email to employees that the financial condition is not good and said, "As part of efforts to address economic uncertainty, annual bonuses may be paid at half the usual amount."

NYT explained that Twitter has entered a cost-cutting management phase due to deteriorating advertising revenue and uncertainty caused by Elon Musk, Tesla Motors CEO's reversal of the acquisition.

Most of Twitter's revenue comes from advertisers, who are currently trying to reduce spending considering the worsening economic situation due to factors such as the Ukraine war. Additionally, the acquisition contract issues with Musk have increased uncertainty about Twitter's future, NYT analyzed.

This year, Twitter has been struggling due to Elon Musk, Tesla CEO, who announced an acquisition plan but suddenly canceled it. Musk agreed in April to buy Twitter for $44 billion (about 58 trillion won) but abruptly terminated the contract in July, three months later. In response, Twitter recently filed a lawsuit to enforce the acquisition contract.

Immediately after Musk announced his intention to withdraw the acquisition plan, Twitter's stock price fell 11.4% in one day, and it also recorded an unusual loss in the second quarter earnings.

This content was produced with the assistance of AI translation services.