Alphabet, the parent company of Google, may soon join the list of Big Tech companies carrying out mass layoffs. The Information claims that managers at the tech giant have been asked to identify the 6% of workers who perform the worst overall, or roughly 10,000 people. Following that, the company is anticipated to begin firing them in early 2023, according to the report.
The decision was apparently made in response to pressure from hedge fund investors at a time when the geopolitical uncertainties and high inflation are deteriorating the state of the world’s finances. According to The Information’s story, the new approach for identifying the bottom 6% of employees would first let managers to withhold incentives from them. The same performance management system had previously demanded that supervisors only recognise the worst 2% of workers.
Google has distinguished itself by not terminating any employees thus far while layoffs have spread around Silicon Valley. A new performance management system, however, might assist managers in letting go of thousands of failing staff beginning in the early part of next year as external pressure on the corporation to increase worker productivity grows. At the end of 2021, Google had around 1.56 lakh employees. The median pay at the corporation, according to a filing with the Securities and Exchange Commission, was $2,95,884.
If Google follows forward with the huge layoffs, it will add its name to a growing list of tech giants that have recently reduced their workforces, including Meta, Amazon, Microsoft, and Twitter. A reduction of 13%, or approximately 11,000 employees, was announced by Meta CEO Mark Zuckerberg earlier this month. Over 50% of Twitter’s 7,500-person employees have been let off since Elon Musk acquired the company. According to a recent source, the largest retailer in e-commerce, Amazon, also intends to layoff 10,000 workers.
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