scorecardresearch
After firing 12000 employees, Google now plans to cut annual bonus of senior executives

After firing 12000 employees, Google now plans to cut annual bonus of senior executives

CEO Sundar Pichai has revealed in an internal meeting that the executives and other senior people at the top level will receive compensation cuts.

Story highlights
  • Google will cut bonuses of top level employees at the company.
  • The tech company just laid off as many as 12,000 employees.
  • The company has promised to offer severance pay to impacted employees.

Google has just laid off thousands of employees and the company is now planning to make reductions on annual bonuses too. The company's CEO Sundar Pichai has revealed in an internal meeting that the executives and other senior people at the top level will receive compensation cuts, according to a report by CNBC. The cited source reported that all senior vice presidents "will see a very significant reduction in their annual bonus" this year and this doesn't apply to people who are at the lower levels.

"The more senior you are, the more your compensation is tied to performance. You can reduce your equity grants if performance is not great," Pichai said. Just a few days back, it was reported that the software giant has plans to delay some of the bonuses, but it seems that it has now decided to cut the compensation amount for top levels. It was reported that Google had decided to offer only 80 percent of bonuses this month and the rest of the amount will reportedly be given in March or April.

Just a few days back, Google announced the layoff of 12,000 employees which was not surprising because many tech companies are removing people to cut expenses. What did make people angry is how the company is handling the layoff process. Many Google employees lost system access in the middle of the night and most of them also don't have idea about how the company is planning to sack employees and on what basis the layoffs were done because it was discovered that people who worked for years also got laid off. Some of the workers who had positive performance reviews were also fired, as per a report from 9To5Mac.

Google's chief people officer, Fiona Cicconi, has clarified in an internal meeting that the layoffs have been done on the bases of "skill set, time in role where experience or relationships are relevant and matter, productivity indicators like sales quotas and performance history." The CEO also admitted that Google lost some really good colleagues across the company. Both the statements does suggest that the layoff might not be just based on performance, which is something that several reports and employees have been claiming.

"I understand you are worried about what comes next for your work. Also, very sad for the loss of some really good colleagues across the company. For those of you outside the US. the delay in being able to make and communicate decisions about roles in your region is undoubtedly causing anxiety," Pichai said.

Published on: Jan 24, 2023, 8:27 PM IST
Posted by: BT Siteadmin, Jan 24, 2023, 8:22 PM IST