Tech colossus Google intends to undertake a performance improvement plan that will ultimately result in the termination of 10,000 workers. Employees who ‘score low’ would be asked to resign, says a report by Hindustan Times sister publication LiveMint.
Google requested its managers to identify 10,000 employees, or 6% of the workforce, who they considered to be underperforming. Supervisors were instructed to reduce the inflated ratings in an earlier notice.
The managers of the internet company might use the performance evaluations to reduce employee benefits like bonuses and stock options in addition to utilising them to reduce the workforce.
According to reports, the choice was made in response to pressure from an activist hedge fund and a market downturn that necessitated cost-cutting measures.
Hedge fund billionaire Christopher Hohn wrote a letter to Alphabet, the parent company of Google, recommending that the firm reduce its workforce. The UK investor also said that the company pays its staff too much compared to other digital businesses.
The company’s workforce is ‘excessive’ in comparison to previous hiring trends and does not correspond with the present business environment. He claims that many fewer highly compensated specialists could manage Google just as effectively.
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