- Google is reportedly planning to fire as many as 10000 underperforming employees.
- The Big Tech company plans to get rid of nearly 6 per cent of its workforce.
- Google plans to evaluate the performance of its employees.
After Twitter, Meta, and Amazon, Alphabet, Google’s parent company, is reportedly planning to fire up to 10,000 underperforming employees. According to a new report, the Big Tech company plans to lay off nearly 6% of its workforce due to the global economic downturn. This follows the recent layoffs of thousands of employees by three major technology companies, including Meta, Twitter, and Amazon.
According to The Information, Google intends to evaluate its employees’ performance through a new ranking and performance improvement plan. The new performance management system is expected to help managers fire thousands of underperforming employees by the beginning of 2023.
According to the report, the rating option in the new performance management system will assist managers in rating team members and planning their bonuses and stock grants accordingly. So, if someone is found slacking at work or not putting in effort, managers will be able to rate them or avoid paying them bonuses using the new performance management system.
Google’s parent company Alphabet hasn’t officially confirmed layoffs yet. But a couple of months ago, CEO Sundar Pichai hinted at upcoming layoffs.
Speaking at the recently hosted Code Conference in Los Angeles Pichai said, “we want to make sure as a company, when you have fewer resources than before, you are prioritizing all the right things to be working on and your employees are really productive, that they can actually, have an impact on the things they’re working on so that’s what we are spending our time on.”
During the same conference, Pichai also referred to microeconomics and said that the company has become slower after an increase in the employee count. “The more we try to understand macroeconomics, the more we feel very uncertain about it. The macroeconomic performance is correlated to ad spend, consumer spend and so on.” “Across everything we do, we can be slower to make decisions. You look at it end-to-end and figure out how to make the company 20 per cent more productive,” the Google CEO said.
Google, like any other tech company, hired a large number of employees following the pandemic, but is now dealing with a number of financial issues. Pichia had previously warned employees who did not take their work seriously. He also stated that people who do not take their jobs seriously will face serious consequences.
Pichai told employees to focus more on productivity. “There are real concerns that our productivity as a whole is not where it needs to be for the head count we have.[We need to] create a culture that is more mission-focused, more focused on our products, more customer-focused. We should think about how we can minimize distractions and really raise the bar on both product excellence and productivity,” he told employees in a memo sent back in August.