Alphabet, Google’s parent company, is set to lay off nearly 10,000 “poor-performing” employees, or 6 percent of its workforce, in a Big Tech layoff season marked by layoffs by Meta, Amazon, Twitter, Salesforce, and more. Gearing up for global conditions.
According to a report in The Information, Google is planning to lay off 10,000 employees through a new ranking and performance improvement plan.
“A new performance management system could help managers weed out thousands of underperforming employees as early as next year. Managers could also use the ratings to avoid giving them bonuses and stock grants,” the report said. has been mentioned.
Under the new system, managers have been asked to classify 6 per cent of employees, or roughly 10,000 people, as underperformers in terms of their impact to the business.
The new system also reduces the percentage of employees who can receive higher ratings.
Additionally, according to the report, Alphabet’s new performance system may use ratings to avoid paying out bonuses and stock grants.
Alphabet has yet to comment on the report.
Alphabet has a workforce of approximately 187,000 employees.
Last year, the average compensation for an Alphabet employee was approximately $295,884, according to a US Securities and Exchange Commission (SEC) filing.
Alphabet reported a net profit of $13.9 billion in the third quarter (Q3), down 27 percent from a year ago, while revenue rose 6 percent to $69.1 billion amid fears of a global slowdown and recession.
The company’s CEO Sundar Pichai aims to make Alphabet 20 percent more efficient, hinting at job cuts.
Earlier reports had emerged that Alphabet is giving some employees 60 days to apply for new roles in the company if their jobs are to be cut.
Pichai had said that the company is “still investing in long-term projects like quantum computing. But it is important to be “smart, frugal, frugal, and more efficient”.
“We are committed to taking care of our employees. I think we are going through difficult times macroeconomically and I think it is important that we align as a company and work together work.
Earlier, while addressing the gathering at the Code Conference in the US, Pichai said that he feels very uncertain about the extent to which the company tries to understand the macroeconomic conditions.
“The macroeconomic performance is related to advertising spending, consumer spending, etc,” he told the audience.
Google has suspended hiring new employees and has reportedly asked some existing employees to “shape up or ship out” if they don’t meet expectations.
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