Depends entirely on your server. If on a shared host or budget host then it's pretty normal. If on a dedicated high end server then no it's not normal. Each user has to be processed for access checks, substitutions, etc.. so it's not as simple as just sending an email though. Ounce we've a batching API and scheduling API the emails will go out in scheduled chunks to avoid all this, but that won't be for awhile.
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