Twitter employees sue Elon Musk's company for refusing to pay 2022 bonuses

Twitter employees have filed a lawsuit claiming that the social media company has not paid their bonuses for 2022. A report by Bloomberg reveals that the employees were promised to be paid 50 per cent of their target amounts as bonuses last year. 

The class-action lawsuit is filed by Mark Shobinger who was appointed as Twitter’s senior director of compensation until last month. He proposed the suit on behalf of the current and former employees who haven’t received their promised bonuses from Twitter.  

Twitter’s bonus plan is usually paid out annually. However, after Elon Musk’s takeover in October 2022, workers who were employed until recently were refused to be paid.

“Twitter refused to pay employees who remained employed by the company in the first quarter of 2023 any bonus,” Shobinger said in the report.

The employees revealed in the lawsuit, “Both before and after Musk’s acquisition was completed in October 2022, Twitter’s management continuously promised the company’s employees, including plaintiff, that their annual bonus for 2022 would be paid under the Bonus Plan.”

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The social media company is facing financial issues after the Musk takeover. Recently, the company even had to lose offices in Colorado over unpaid rent. Twitter is also being evicted from its Boulder office due to the same reason.

In addition to this, several brands have backed out of Twitter as they have lost trust and its ability to remove harmful content from the platform including violent, pornographic and hateful content. As a result, Twitter has witnessed a drop of over 50 per cent in the ad revenues, according to a report by NYT.

Since the Musk takeover, the workforce of the company has been cut down to 75 per cent due to layoffs and mass resignations.

Twitter is also being sued for $250 million due to copyright infringement by a group of 17 publishers led by National Music Publishers’ Association. The lawsuit alleges that Twitter has unfairly benefited from copyright infringement for years by allowing users to share unlicensed music, reported The Guardian.

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