Alphabet, Google's parent firm, is preparing to lay off around 10,000 "poor performing" employees, or 6% of its workforce, according to reports.
This is allegedly a part of the big tech layoff season, which Meta has already kicked off, Amazon, Twitter, Salesforce, and others in response to the challenging global economy.
New Performance Management System
As per an article by Business Insider India, The Information claims that Google has a new ranking and performance improvement strategy in the works to help smooth the transition for 10,000 workers leaving the company.
"A new performance management system could help managers push out thousands of underperforming employees starting early next year," said the report. It was also mentioned that managers could exploit the ratings to get out of giving employees incentives or stock grants.
In accordance with the new approach, supervisors have been requested to label as low performers the 6% of the workforce, corresponding to around 10,000 individuals. And this should be based on the contribution they provide to the company.
With the new method in place, fewer workers will be able to get a high-performance evaluation.
Alphabet's new performance system might also use the scores to forego incentive compensation like bonuses and stock rewards, said the report.
Reports claim that Google has told some of its current employees to "shape up or ship out" if they cannot meet performance expectations.
Alphabet's Workforce Count and Performance
Alphabet's workforce consists of close to 187,000 people now.
Based on a filing with the US Securities and Exchange Commission (SEC) via Business Insider India, the median salary of an Alphabet employee last year was around $295,884.
While sales climbed by 6% to $69.1 billion, Alphabet's net profit plunged 27% year over year to $13.9 billion in the third quarter. This decline came as the company faced the effects of a worldwide slowdown and recessionary worries.
CEO Sundar Pichai has stated that he wants to increase Alphabet's efficiency by 20%, which might lead to layoffs.
Earlier, it was reported that employees facing layoffs at Alphabet would be given 60 days to find other employment inside the firm.
Pichai has previously said that the firm still invests in long-term technologies like quantum computing. To succeed, it is paramount to be clever, thrifty, scrappy, and more efficient.
"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," Pichai remarked.
Previously, when addressing the crowd at the Code Conference in the US, Pichai said that no matter how hard the firm tries to grasp the current macroeconomic situation, it continues to feel quite uneasy about it.
According to the CEO's remarks, "the macroeconomic success is tied to advertising expenditure, consumer purchases, and so on.
This article is owned by Tech Times
Written by Trisha Kae Andrada
