Google Layoffs Might Feel Like a Blast from the Past for Techies
Google Layoffs: Google’s parent company Alphabet is planning to lay off about 10k employees
Google’s parent company Alphabet, is reportedly planning for big tech layoff. Google Layoffs will affect about 10,000 “employees and Google claim that they were performing poorly. Google layoffs gearing up to remove almost 6 percent of its workforce in the big tech layoff season initiated by Meta, Amazon, Twitter, Salesforce, and more amid the rough global conditions.
According to a report, Google layoffs 10,000 employees based on a new ranking and performance improvement plan. “A new performance management system could help managers push out thousands of underperforming employees starting early next year. Managers could also use the ratings to avoid paying them bonuses and stock grants,” the report says. Under this particular system, managers have been asked to categorize 6 percent of employees, or roughly 10,000 people, as poor performers in terms of their impact on the business. The new system also reduces the percentage of employees that can score a high rating. Moreover, the recent performance system at Alphabet is going to use the ratings to avert paying bonuses and stock grants, according to the report.
Google’s parent company Alphabet has not given any comment on the report. Alphabet has a strength of nearly 187,000 employees. The median compensation for an Alphabet employee last year was around US$295,884, according to a US Securities and Exchange Commission (SEC) filing. Google’s Alphabet reported a net profit of US$13.9 billion in the third quarter (Q3), down 27 percent from a year earlier, while revenue increased 6 percent to US$69.1 billion, amid global slowdown and recession fears.
The company’s CEO Sundar Pichai said that he is working with a goal to make Alphabet 20 percent more efficient, hinting about the Google Layoffs. As per reports, Alphabet was giving 60 days to some workers to apply for a new position at the company if their jobs are about to be cut. CEO Sundar Pichai said the company is “still investing in long-term projects like quantum computing. But it’s important “to be smart, to be frugal, to be scrappy, to be more efficient”. He said “We’re committed to taking care of our employees. I think we’re just working through a tough moment macroeconomically and I think it’s important we as a company align and work together.”
A few days back, while addressing a crowd at the Code Conference in the US, Pichai said that the more the company tries to understand the macroeconomic conditions, it feels very uncertain about it. “The macroeconomic performance is correlated to ad spending, consumer spends,s and so on,” he said to the audience. Google has freezed hiring for new employees and reportedly told some existing employees to “shape up or ship out” if expectations are not met.