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Last Updated: 22nd November, 2022 19:33 IST
Google Asks Managers To Fire 10,000 'poor Performers' As Mass Layoffs Hit Tech Sector
Tech firms are laying off people, be it Meta (Facebook), Amazon, Twitter and now Google. Google's parent company Alphabet is planning to lay off 10,000 people.
As the Fed raises interest rates, the digital advertising business suffers, leading to a downfall in the value of tech stocks, and tech firms are attempting to cut costs. All famous tech firms are laying off people, be it Meta (Facebook), Amazon, Twitter and now Google. Google and its parent company Alphabet is planning to lay off as many as 10,000 people.
Alphabet will examine the performance of its employees through stack ranking and if they are categorised as "poor performers" they will lose their job. As per a report from Forbes, Google might even bank on these rankings to avoid paying bonuses and stock grants. Google's managers have been reportedly asked to categorize 10,000 employees as "poor performers" so that 10,000 people can be fired. Alphabet has a total workforce of 187,000 people, which is one of the largest workforces in tech.
British hedge fund's head says Alphabet is "bloated"
A British hedge fund billionaire named Christopher Hohn wrote a letter to Alphabet saying that Google has a bloated workforce and it needs to be cut down. He said that the company employs more people than necessary. He also pointed out that compared to other BigTech firms, Alphabet pays its employees much more. The letter mentions how Google pays its employees 70 percent more than Microsoft. When the salary that Google pays is compared with the salary paid by top 20 tech firms then Google pays 153 percent more.
Layoffs in the tech sector
The reason Google pays its employees much more is not that the firm is more generous than other firms. Google pays more to horde talent, which ensures other firms can't hire these people and pose a challenge to Google's monopoly. The New York Times has reported that Amazon is planning to fire 10,000 employees as well to maintain the long-term health of the company. “There will be more role reductions as leaders continue to make adjustments," said Amazon CEO Andy Jassy.
Meta founder Mark Zuckerberg laid off 11,000 people and said that he takes full responsibility for the decision. Twitter's new owner Elon Musk has fired 3,000 employees, following which he offered an exit route to other employees as well, who are not willing to return to the office to work after he cancelled work from home.
Google Asks Managers To Fire 10,000 'poor Performers' As Mass Layoffs Hit Tech Sector
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