Google’s parent company Alphabet is reportedly looking to identify and fire up to 10,000 “underperforming” employees. An investor previously called for job cuts. To reduce costs, Google is now planning to introduce one Performance Rankings.
So far, Google has been one of the few large tech companies that has not carried out extensive job cuts. While Amazon, Meta, Twitter and Co. put thousands of employees out the door, the Alphabet subsidiary has so far evaded the wave of layoffs.
Like the business magazine forbes reported, but now a mass layoff at Google is also imminent. Up to 10,000 employees are at risk of being fired due to pressure from a hedge fund manager, the current economic crisis and the need to cut costs.
Google wants to identify “underperforming” employees
The company also plans to introduce a performance improvement ranking system designed to identify “underperforming” employees. Employees who receive a negative rating could in turn be fired.
Noisy forbes Alphabet asked Google executives to classify six percent of the workforce — equivalent to around 10,000 employees — as appropriate. Previously, the company had traditionally identified two percent of the underperforming employees.
Alphabet: Investor calls for layoffs
Google investor Christopher Hohn has reportedly previously Write to Alphabet, claiming that the company overpays its employees. The British billionaire and hedge fund manager therefore called for a reduction in the “bloated workforce”.
Alphabet currently employs around 187,000 people. However, at 20 percent, the hiring numbers seem to have spiraled out of control. At least that’s what investor Hohn thinks, who describes the company’s personnel policy as “excessive”. The search engine giant could therefore be operated efficiently with significantly fewer employees.