Alphabet, Google's parent company, may lay off 10,000 employees: Report
Alphabet has a workforce of nearly 187,000 employees and is yet to comment on the reported mass layoffs that may hit the company in days to come or early next year. According to the new approach, managers must identify 6% of workers, or around 10,000 individuals, as low performers based on their significance to the company.
Following Twitter, Facebook, and Amazon, Alphabet, the parent company of Google, is apparently preparing to fire 10,000 workers, or 6% of the workforce, due to "poor performing" staff, in accordance with a new performance grading system. Google intends to gradually let go of 10,000 employees through a new ranking and performance improvement strategy, according to a story in The Information.
"Starting early next year, a new performance management system may let managers fire thousands of underachievers. The ratings might potentially be used by managers to prevent giving them bonuses and stock grants," the report said.
According to the new approach, managers must identify 6% of workers, or around 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 incentives and stock awards. Alphabet hasn't officially responded on the report, though. In all, Alphabet employs over 187,000 people.
According to a US Securities and Exchange Commission (SEC) report, the average salary for an Alphabet employee last year was roughly $295,884.
The company's CEO Sundar Pichai aims to make Alphabet 20 per cent more efficient, hinting at job cuts. According to prior reports, if their positions are going to be reduced, Alphabet would give certain employees 60 days to seek for a new position with the business. According to Pichai, the business "continues to invest in long-term technologies like quantum computing. However, it's crucial "to be shrewd, thrifty, resourceful, and more efficient."
"We are devoted to providing for our staff. We're now going through a challenging macroeconomic period, therefore I believe it's critical that our firm unite and cooperate," Pichai stated.
Google has suspended hiring new employees and reportedly told some existing employees to "shape up or ship out" if expectations are not met.