Another big tech giant might soon start laying off employees in the thousands. Alphabet's Google might soon layoff up to 10,000 employees, owing to the growing pressure on the company to downsize.
A report by The Information has claimed that Google managers have been asked to analyse and rank the 'poor performing' employees. The company is reportedly willing to let go of 6 per cent of its employees. This accounts for 10,000 people. Google will use a ranking system and the lowest-ranked employees are expected to be fired from the company.
Google has witnessed a major spike in hirings in the past quarter. Experts have been warning Google about its inflated workforce as well as salaries. Billionaire activist investor, Christopher Hohn, has claimed that Google employees are paid a lot more, in comparison to the rest of the industry. He claimed that the hiring has outpaced the actual need of the company.
Google had earlier announced that it will be slowing down the hiring process in the fourth quarter of the year. However, the economy seems to have pushed the otherwise 'employee-friendly' company to a wave of layoffs that is almost thrice the size of what is usually expected from Google.
Currently, Alphabet employs around 1,87,000 employees, making it one of the biggest employers in the tech industry. A US SEC filing revealed that the median annual salary of a Google employee is around $2,95,884 (roughly Rs 2.41 crore).
On the other hand, Google has been witnessing a drop in profits. The company reported a net profit of $13.9 billion in Q3 which was 27 per cent lower than the same period last year. This drop was despite an overall 6 per cent increase in revenue to $69.1 billion. This could be the driving force behind Alphabet's decision to trim down the workforce.
Google Joins the List
Meta, Twitter, Amazon, and many prominent, US-based tech companies are on a mission to downsize. Most of the companies have registered their biggest layoffs ever in just the past month. Meta laid off over 11,000 employees, Twitter is left with less than a third of its entire workforce, and Amazon is also expected to continue layoffs well into 2023.
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