Google parent company Alphabet is planning to lay off about 6 percent of its global workforce, according to a new report. Team managers have apparently been asked to evaluate staff and those found performing poorly will be asked to leave. Six percent would roughly mean 10,000 employees in terms of headcount. It isn’t immediately clear if evaluations and layoffs will happen in select verticals or across the company.
Alphabet, that owns Google, has seen a major spike in hirings in the last quarter, probably fuelled by growth witnessed during the pandemic. Experts however have been wary about this. British billionaire hedge fund manager Christopher Hohn had recently pointed out that Google employees are generally paid more in comparison to the industry norms and that hirings at the company might have outpaced actual need. Google is said to have increased its employee headcount by about 20 percent annually since 2017 and experts have advised it to make come cuts on this regard, in order to brace itself for the future.
The Information is now reporting that as much as 6 percent of Alphabet’s staff may get the pink slip soon— beginning early next year— based on their performance. This is higher than what was expected earlier. Previously, it was reported that about 2 percent of employees would be fired.
Alphabet is one of the biggest employers in tech with around 1,87,000 employees offering a median annual salary of around $2,95,884 to each, as per a recent US SEC filing. Profits have however plummeted. In Q3 2022, the company reported 27 per cent lower profit compared to same period last year. That could be a big reason why we’re now hearing of layoffs at the company.
If at all the reports become a reality, Alphabet will join the likes of Meta, Twitter, Amazon, and more in laying off a sizeable chunk of staff off late.