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Google’s parent company Alphabet ‘prepares’ to lay off 10K employees

Alphabet, Google’s parent company, is reportedly preparing to lay off about 10,000 “underperforming” employees, or 6 percent of its workforce, in Big Tech layoff season kicked off by Meta, Amazon, Twitter, Salesforce and more amid the harsh global conditions.

According to a report in The Information, Google plans to relieve 10,000 employees through a new ranking and performance improvement plan.

“A new performance management system could help managers lay off thousands of underperforming employees starting early next year. Managers could also use the ratings to avoid paying bonuses and stocks,” the report said.

Under the new system, managers have been asked to categorize 6 percent of employees, or about 10,000 people, as underperforming employees in terms of their impact on the company.

The new system also lowers the percentage of employees who can score a high rating.

In addition, the new performance system at Alphabet could use the ratings to avoid paying bonuses and stock grants, the report said.

Alphabet has not yet responded to the report.

Alphabet has a workforce of nearly 187,000 employees.

The median compensation for an Alphabet employee was about $295,884 last year, according to a filing from the U.S. Securities and Exchange Commission (SEC).

Alphabet reported net profit of $13.9 billion in the third quarter (Q3), down 27 percent from a year earlier, while revenue rose 6 percent to $69.1 billion amid global slowdown and fear of a recession.

The company’s CEO, Sundar Pichai, wants to make Alphabet 20 percent more efficient, signaling job losses.

Earlier reports surfaced that Alphabet gave some employees 60 days to apply for a new position at the company if their jobs were cut.

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Pichai had said the company “still invests in long-term projects like quantum computing. But it’s important” to be smart, be frugal, be sloppy, be more efficient.

“We are committed to taking care of our employees. I think we are going through a tough time macroeconomically and I think it is important that we as a company align and work together,” said Pichai.

Earlier, speaking at the Code Conference in the US, Pichai said that the more the company tries to understand macroeconomic conditions, it becomes very uncertain about it.

“The macroeconomic performance is correlated with advertising spending, consumer spending and so on,” he told the audience.

Google has suspended hiring of new employees and has reportedly told some existing employees to “shape up or leave” if expectations aren’t met.



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