Twitter's CFO warned employees they're on track to get 50% of their typical annual bonuses because of the company's financial challenges, report says

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© Provided by Business InsiderTwitter CEO Parag Agrawal (left) is at loggerheads with Elon Musk over the Tesla CEO's proposed $44 billion takeover. Kevin Dietsch/Getty Images, 

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Twitter CFO Ned Segal warned employees Friday their bonuses could be half the maximum, per The NYT.

Segal said the company's bonus pool was at 50% of where it could be if financial targets were being hit, per The NYT.

Twitter employees' bonuses are tied to the company's financial performance, which has declined of late.

Twitter says Musk is treating the merger process as "an elaborate joke."

In the filing, Twitter implies that Musk hasn't taken Twitter, its shareholders, or Twitter's threat of legal action seriously.

Twitter told employees Friday they're on course to get half their typical annual bonuses because of the company's financial challenges, The New York Times reported.

In an email to staff, Twitter CFO Ned Segal said the social-media company's bonus pool was currently at 50% of what it could be if financial targets were being hit, The NYT reported, citing as sources two employees who received the email.

Twitter didn't immediately respond to Insider's request for comment. The NYT said a Twitter spokesperson confirmed the email's veracity and declined to comment further.

Twitter's warning on bonuses comes as it tries to force Tesla and SpaceX CEO Elon Musk to complete his proposed $44 billion acquisition of the social-media group — something Twitter highlighted in its second-quarter earnings report as having had a detrimental impact on its finances.

Twitter, Meta, Alphabet, and other platforms that rely at least in part on digital advertising for revenue are grappling with a downturn in the ad market amid fears of recession.

Twitter employees receive annual bonuses based on the company's financial performance, which could improve before they are ultimately paid out.

Twitter and Musk are at loggerheads over their proposed $44 billion deal, which has culminated in a fractious legal battle between the parties. Musk argues Twitter won't provide him with necessary detail about the volume of spam bots on its platform.

In its second-quarter earnings report, published July 22, Twitter said "uncertainty" over Musk's proposed takeover of the company, as well as advertising industry headwinds, contributed to its first quarterly revenue decline since 2020. Twitter reported a net second-quarter loss of $270 million compared with a net income of $66 million in the same quarter in 2021.

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