Alphabet, the parent company of Google is preparing to reduce its workforce by six per cent. It will let go about 10,000 employees based on their poor performance.
The employees on the lowest rank will have to leave, basis the ranking system used by the Company,
This move is in response to the mounting pressure on Alphabet to reduce headcount at the Company, which presently has around 1,87,000 employees in its workforce.
Managers at Google have been asked to study the performance of the employees and rank them accordingly, so that those on the lowest rank, that is the poor performers, can be identified and asked to leave. The Company is ready to let go six per cent of the workforce.
Going forward, the same rankings or ratings may be used to cut down on employee incentives.
Google has been known for its excessive workforce size and huge salary packages that are amongst the highest in the sector. The Company has, in the past, hired more people than it actually requires, which has been worrying investors and experts.
According to a report by the US Securities and Exchange Commission, the average salary of an employee at Alphabet was about $295,884 in 2021.
Profits have been dipping for Google of late. The third quarter saw the net profit falling by 27 per cent, to about $13 billion, compared to the same quarter in the previous year, even while there was a six per cent increment in its overall revenue.
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