Los Angeles: Alphabet, the parent company of Google, plans to lay off 10,000 "poor performing" employees, or 6% of its workforce, as part of the Big Tech Layoff Season that has already been kicked off by Meta, Amazon, Twitter, Salesforce, and other companies in light of the challenging global economy.
Google intends to gradually let go of 10,000 employees through a new ranking and performance improvement plan, according to a story in The Information.
Starting early in the following year, managers might be able to fire thousands of underperforming workers with the aid of a new performance management system. The report stated that managers might exploit the scores to avoid giving employees bonuses and stock awards.
According to the new approach, managers must identify 6% of workers, or about 10,000 individuals, as low performers based on their significance to the company.
The number of employees who can receive a high rating has likewise decreased under the new approach.
According to the report, the new performance system at Alphabet may also utilise the ratings to avoid giving out bonuses and stock grants. Alphabet hasn't responded to the report yet. In total, Alphabet employs over 187,000 people.
According to a US Securities and Exchange Commission (SEC) filing, the average salary for an Alphabet employee last year was roughly $295,884.
In the third quarter (Q3), Alphabet reported a net profit of $13.9 billion, a decrease of 27% from the same period in the previous year, while revenue climbed by 6% to $69.1 billion.
Sundar Pichai, the company's CEO, has hinted about employment layoffs in order to increase Alphabet's efficiency by 20%. According to earlier reports, if their jobs are going to be reduced, Alphabet would give some employees 60 days to seek for a new position with the company.
Pichai said, the company "continues to invest in long-term technologies like quantum computing. However, it's crucial "to be shrewd, thrifty, resourceful, and more efficient." "We're dedicated to looking out for our workers. We're currently going through a challenging macroeconomic period, therefore it's critical that we as a corporation coordinate and cooperate, Pichai said.
Earlier, when speaking to the crowd at the US Code Conference, Pichai noted that the corporation feels increasingly unsure about the macroeconomic environment the more it attempts to comprehend it. He informed the audience that "the macroeconomic success is tied to ad spend, consumer spend, and so on."
If expectations are not reached, Google has reportedly stopped employing new workers and urged some current workers to "shape up or ship out."
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