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Google starts performance review, plans to fire 10000 employees who score low

Google starts performance review, plans to fire 10000 employees who score low

Layoffs coming at Alphabet. Google plans to evaluate the performance of its employees through a new ranking and performance improvement plan.

Story highlights
  • Google is reportedly planning to fire as many as 10000 underperforming employees.
  • The Big Tech company plans to get rid of nearly 6 per cent of its workforce.
  • Google plans to evaluate the performance of its employees.

After Twitter, Meta, and Amazon, Google's parent company, Alphabet, is reportedly planning to fire as many as 10000 underperforming employees. As per a new report, the Big Tech company plans to get rid of nearly 6 per cent of its workforce amid the rough global economic conditions. This comes after three top tech companies, including Meta, Twitter and Amazon fired thousands of employees across the globe in the last few weeks.

According to a report coming from The Information, Google plans to evaluate the performance of its employees through a new ranking and performance improvement plan. It is believed that the new performance management system could help managers push out thousands of underperforming employees around the start of 2023.

The report suggests that the rating option in the new performance management system will help managers rate team members and accordingly plan their bonuses and stock grants. So, if someone is found slacking at work or not putting in effort, using the new performance management system, managers will be able to rate them or avoid paying them bonuses.

Google's parent company Alphabet hasn't officially confirmed layoffs yet. But a couple of months ago, CEO Sundar Pichai hinted at upcoming layoffs.

Speaking at the recently hosted Code Conference in Los Angeles Pichai said, "we want to make sure as a company, when you have fewer resources than before, you are prioritizing all the right things to be working on and your employees are really productive, that they can actually, have an impact on the things they're working on so that's what we are spending our time on."

During the same conference, Pichai also referred to microeconomics and said that the company has become slower after an increase in the employee count. "The more we try to understand macroeconomics, the more we feel very uncertain about it. The macroeconomic performance is correlated to ad spend, consumer spend and so on." "Across everything we do, we can be slower to make decisions. You look at it end-to-end and figure out how to make the company 20 per cent more productive," the Google CEO said.

Google, just like any other tech company out there, hired a lot of employees after the pandemic but is dealing with a number of financial issues now. Earlier, Pichia warned employees who do not take their work seriously. He also said that people who do not take work seriously will need to face serious outcomes.

Pichai told employees to focus more on productivity. "There are real concerns that our productivity as a whole is not where it needs to be for the head count we have.[We need to] create a culture that is more mission-focused, more focused on our products, more customer-focused. We should think about how we can minimize distractions and really raise the bar on both product excellence and productivity," he told employees in a memo sent back in August.