Alphabet, Google's parent company, may lay off 10,000 employees
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Alphabet, Google’s parent company, may lay off 10,000 employees

Nearly 187,000 people work for Alphabet, which has not yet commented on the rumours of a big layoff that could occur soon or at the beginning of next year. The new strategy requires managers to categorise 6% of employees, or roughly 10,000 people, as low performers based on their importance to the business.

Google’s parent company, Alphabet, is reportedly planning to terminate 10,000 employees, or 6% of the workforce, as a result of “poor performing” staff, in accordance with a new performance grading system, following in the footsteps of Twitter, Facebook, and Amazon. According to a report in The Information, Google plans to progressively lay off 10,000 people as part of a new ranking and performance improvement strategy.

A new performance management system might enable managers to terminate thousands of underachievers early in the following year. According to the article, supervisors may use the evaluations to deny employees bonuses and stock grants.

The new strategy requires managers to categorise 6% of employees, or roughly 10,000 people, as low performers based on their importance to the business. The new strategy has also reduced the number of employees who are eligible for high ratings.

The scores may potentially be used by Alphabet’s new performance system to forgo providing incentives and equity awards. However, Alphabet hasn’t given a formal response to the report. Over 187,000 employees are employed at Alphabet in total.

An SEC (Securities and Exchange Commission) report from the US states that the average pay for an Alphabet employee last year was about $295,884.

Sundar Pichai, the company’s CEO, has hinted about employment layoffs in order to increase Alphabet’s efficiency by 20%. According to earlier reports, Alphabet would give certain employees 60 days to look for a new role with the company if their employment were going to be decreased. The company “continues to invest in long-term technologies like quantum computing,” according to Pichai. To “be shrewd, economical, resourceful, and more efficient” is essential, nevertheless.

“We are committed to supporting our personnel. We are currently through a difficult macroeconomic situation, thus in my opinion it is crucial that our company work together,” Pichai said.

If expectations are not reached, Google has reportedly stopped employing new workers and urged some current workers to “shape up or ship out.”

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