Alphabet To identify 10,000 underperformers, kick them out

Google’s parent company layoffs: Alphabet to identify 10,000 underperformers, fire them

Photo: BCCL

New Delhi: As many as 1,36,989 employees have been laid off by 850 companies including big tech companies like Amazon, Twitter, and Meta so far in 2022. Google, which appears to have kept its peace during the wave of layoffs, seems to be She doesn’t seem immune any more. Now, its parent company, Alphabet, is slated for layoffs.

The tech giant, which has so far avoided the trend of job cuts in various sectors, is now planning to lay off 10,000 employees with a new plan to improve ranking and performance. This is due to pressure from an active hedge fund, adverse market conditions, and the need to cut costs, according to a report in The Information.

Alphabet’s new ranking and performance improvement plan

Under the new system, managers were required to rate 6 percent of employees, or roughly 10,000 people, as low performers in terms of their impact on the business. Employees who will be rated as poor performers will be disqualified. The new system also reduces the percentage of employees who can get a high rating.

In addition, Alphabet’s latest performance system can use these ratings to avoid paying out bonuses and awarding stock to multiple employees. There’s no official confirmation of this from Alphabet, which has roughly 187,000 employees, yet.

Google pays employees a lot

The need for such a rating system arose after British billionaire activist investor Christopher Hohn sent a letter to Google’s parent company, saying its employees were paid too much compared to their counterparts at other tech giants. The letter added that Alphabet’s bloated workforce needed to be cut back.

According to Hoon, the company’s headcount is “excessive” compared to past hiring trends and does not match the needs of the current climate at the company. According to a US Securities Commission report, the average compensation for an Alphabet employee last year was about $295,884. That’s nearly 70 percent more than what Microsoft paid its employees.

Mass layoffs in technology

From Twitter to Meta, people have been fired in droves as companies struggle to manage costs. Earlier this month, Meta CEO Mark Zuckerberg announced that 11,000 workers would lose their jobs, just days after Twitter’s new boss Elon Musk cut nearly 50 percent of jobs via the microblogging site.

Following Meta and Twitter, Amazon also announced in a blog post that it will be making layoffs. The retail giant will reportedly cut 10,000 employees from payroll, according to The New York Times.

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