According to multiple media reports, Google will lay off 10,000 “underperforming” employees in response to adverse market conditions. The performance improvement plan will see the gradual dismissal of low-performing employees.
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Although Google has so far bucked the trend, more than 135,000 workers in the tech and startup sectors have been laid off this year.
So far, neither Google nor Alphabet have made any public announcements regarding this alleged move.
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Google managers have now been ordered by senior management to identify 6% of employees, or 10,000 people, as underperformers, up from the previous 2%. In an internal memo, managers had previously been instructed to reduce the inflated ratings.
In a letter to Alphabet, billionaire Christopher Hohn argued that the company should reduce its headcount. He also told Google's parent company that its employees are paid too much compared to other digital companies.
Hohn argues that the company has too many employees compared to how many it has hired in the past, and that this does not meet what is required to run a business today. He adds that search engine could work just as well with fewer specialists on staff who are paid less.
The average salary for an Alphabet in 2021, as reported by the U.S. Securities and Exchange Commission, was $295,884. To put that into perspective, that's more than 70% more than Microsoft pays its staff and 153% more than the 20 largest tech companies in the United States pay their employees.
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Hohn’s views are strikingly similar to Elon Musk’s idea for Twitter. Many well-known US -based digital companies , such as Twitter , Amazon and Meta , are trying to save costs . Just a month ago, the majority of the companies began reporting that they would be making layoffs – the most in their history. In addition to Twitter losing more than a third of its staff , Meta laid off about 11,000 workers. Amazon is expected to continue reducing staff through 2023.
Information source: livemint.com
