Layoffs At Google Parent Company: Alphabet To Identify 10,000 Under performers, Fire Them
November 23, 2022: UK billionaire activist investor Christopher Hone wrote in a letter to Google parent Alphabet that its employees are paid very much like their counterparts at other tech giants.
The letter added that Alphabet’s bloated workforce needed to be cut. The average compensation for an Alphabet employee last year was approximately $295,884.
So far in 2022, as many as 1,36,989 employees have been laid off by 850 companies, including tech giants like Amazon, Twitter, and Meta.
Google, which protected itself during layoffs, no longer seems immune. . Now, layoffs are set to hit its parent company Alphabet.
The tech giant, which has so far managed to avoid the trend of job cuts across sectors, is now planning to lay off 10,000 employees through a new ranking and performance improvement plan.
According to a report in The Information, this is due to pressure from activist hedge funds, adverse market conditions, and the need to cut costs.
Under the new system, managers are asked to classify 6 percent of employees, or about 10,000 people, as low performers in terms of their impact on the business.
Employees who are rated as poor performers will be dismissed. The new system also reduces the percentage of employees who can receive higher ratings.
In addition, Alphabet’s latest performance system may use these ratings to avoid paying bonuses and stock grants to many employees.
There is no official confirmation yet from Alphabet, which has a workforce of around 187,000 employees.
The need for the rating system arose after UK billionaire activist investor Christopher Ho wrote a letter to Google’s parent, stating that 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. According to Hohn, the company’s headcount is “excessive” compared to previous hiring trends and doesn’t match the needs of the company’s current climate.
According to US SEC filings, Alphabet’s average employee compensation last year was about $295,884.
This is about 70 percent more than what Microsoft has paid its employees. From Twitter to Meta, people have been laid off 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 new Twitter boss Elon Musk cut nearly 50 percent of jobs at the microblogging site.
After Meta and Twitter, Amazon also announced in a blog post that it would be laying off. The retailing giant will cut 10,000 employees from the payroll, according to the New York Times.
|Are you an
Entrepreneur or Startup?
Do you have a Success Story to Share?
SugerMint would like to share your success story.
We cover entrepreneur Stories, Startup News, Women entrepreneur stories, and Startup stories
Read more Business Stories at SugerMint. Follow us on Twitter, Instagram, Facebook, LinkedIn