Sorry to have bumped into Elon now? Woke Twitter staff are warned that upcoming bonuses will be half of what they expected as the company suffers huge losses and battles Musk over its aborted $44 billion acquisition deal
- Twitter CFO Ned Segal sent an email Friday telling staff the bonuses would be half of what they expected.
- The company suffered major financial setbacks in the second quarter of 2022, losing $270 million
- The social media platform blamed a wayward ad industry that failed to spend money due to the economic turmoil caused by the war in Ukraine
- Tech billionaire Elon Musk’s decision to pull out of a $44 billion bid for the company has sent the stock price plummeting nearly 30%
Woke Twitter staffers were told on Friday that their upcoming bonus checks could be half of what they expected due to a trying second quarter and the costly battle with Elon Musk over his aborted $44 billion takeover bid.
The company’s chief financial officer, Ned Segal, emailed the company’s 7,500 employees to let them know the bonus pool had been depleted due to a net loss of $270 million to the spring.
The company blamed a fickle advertising industry, which accounts for a large portion of the platform’s revenue, which has been reluctant to spend advertising money due to economic uncertainty caused by the war in Ukraine.
Twitter CFO Ned Segal told staffers bonuses this year could be half of what they expected
Twitter lost $270 million in Q2 2022 due to weak ad sales and Elon Musk’s failed takeover bid
Elon Musk offered to buy the company for $54.20 per share, a 38% increase over the stock price at the time
Musk’s flirtation with buying the company in April did not help the company’s results.
The aerospace and electronic car pioneer created internal turmoil and sent stock prices on a roller coaster when he agreed to buy the company for $54.20 per share, a $38 increase % compared to the current state of the actions.
At the time, Musk criticized the social media platform’s woke culture and criticized its speech suppression policy.
Twitter’s share price has fallen nearly 30% since last year due to Musk’s failed takeover bid and anemic ad buying on the platform
Then, in July, he pulled out of the deal, tweeting a poop emoji and complaining about bots and fake accounts on the platform.
In its second-quarter statement, Twitter attributed its financial difficulties to “ad industry headwinds associated with the macro environment as well as uncertainty related to Twitter’s impending acquisition by an Elon Musk subsidiary.” .
The company sued Musk in federal court alleging breach of contract, saying he signed a binding contract to buy the company at the premium share price.
Since Musk dropped the bid, the stock price has fallen almost 30% from last year.
Twitter staff have expressed resistance to the tech billionaire’s takeover after promising to relax rules on what is censored on the platform.
The billionaire blasted the “extreme antibody reaction” from “those who fear free speech” and said “it says it all” as he launched his first public backlash against workers.