Amid Mass Layoff Wave, Tech Giant Google Decides To Partially Delay Employees' Bonus
Sundar Pichai, the CEO of Google, appears to be under pressure amid a mass layoff wave that has affected lakhs of employees worldwide.Google is delaying the payment of a portion of its employees' year-end bonuses, the search engine giant said on Thursday. The advance bonus of 80% will be paid in January and the remaining 20% in March or April.
At a time when tech giants such as Microsoft, Amazon, and HP have already announced mass layoffs amid growing recession fears and an economic slowdown, Google too seems to be feeling the pressure.
Google To Partially Delay Bonuses
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Google is delaying the payment of a portion of its employees' year-end bonuses as part of a transition to a new performance management system, the search engine giant said on Thursday, as per a Reuters report.
The company will pay an 80% advance bonus to eligible employees initially and the remainder in later months, a spokesperson reportedly said, adding that the move was communicated to staff last year.
The advance bonus of 80% will be paid in January and the remaining 20% in March or April, according to CNBC, which first reported the story. "All bonuses next year onwards will be paid in March," the report added. Google typically pays full bonuses in the first month of the year.
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Troubles In Recent Months
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Last week, Google parent Alphabet¡¯s Verily health sciences unit, said it would cut headcount by 15%, accounting for about 240 lost jobs, and the company also reduced staff in its robotics unit Intrinsic.
In the latter part of 2022, Alphabet reportedly cancelled the next generation of its Google Pixelbook laptop, slashed funding to its Area 120 in-house incubator, and said it would be shuttering its digital gaming service Stadia.
When CEO Pichai stated in September that he wanted to make the company 20% more efficient, he hinted at potential layoffs.
Meanwhile, Google has been overhauling its performance ratings system. The company recently released new details, showing a larger number of employees will more easily fall into lower-rated categories, as per CNBC report. Employees said they feared it could be used as a way to reduce headcount without conducting layoffs.
Also Read: Intel May Layoff 20% Employees
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