Many well-known US-based tech companies, like Meta, Twitter, Amazon, and others, are on a downsizing drive. In only the past month, the majority of the companies announced their biggest-ever layoffs.
Several major IT firms had staked out that the increase in online engagement during the COVID pandemic would continue after it subsided. However, it didn't go as planned.?
Mark Zuckerberg, the founder of Facebook and CEO of Meta, admitted this while addressing the termination of 11,000 jobs〞roughly 13% of the company's workforce.
Alphabet is one of the largest employers in the tech sector, with about 1,87,000 people. According to a US SEC report, the average yearly wage for a Google employee is about $2,95,884. (roughly Rs 2.41 crore).
Insiders claim it will be executed after the underperformers are identified. However, the tough 〞 and worsening 〞 global financial situation lies at the core of the anticipated reduction, according to IT news portal The Information.
In a new "ranking and performance improvement plan," team supervisors are requested to assess the performance of the staff. The purge could begin by early 2023 or in a few more weeks.
However, CEO Sundar Pichai had suggested it a few months prior. According to what he had mentioned, Google as a company "believes that when you have fewer resources than before, you are prioritizing all the correct things to be working on, and your employees are productive."
"As layoffs spread across Silicon Valley, Google has stood out by not cutting employees. But as outside pressure builds on the company to improve the productivity of its workers, a new performance management system could help managers push out thousands of underperforming employees starting early next year," it reported.
Sixty percent of Twitter's 7,000-plus employees have left because Elon Musk, the company's new owner, is going into transformation overdrive. He needs to restructure practically everything because he has stated that he won't accept losses.
According to Reuters, activist investor TCI Fund Management recently demanded that the business reduce costs by reducing its headcount to prepare for a future of slower growth. The $6 billion fund invested in Alphabet since 2017 claimed that the company had "too many employees and a high cost per person."
TCI said that Alphabet has some of the highest compensation in Silicon Valley and that since 2017, the company's headcount has increased by 20% annually.
Google or Alphabet has officially announced no layoffs as of yet.
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