As the Fed raises interest rates, the digital advertising business suffers. Which directly affects the value of technical stocks. After which tech companies are trying to cut costs. All the famous tech firms are laying off people, be it Meta (Facebook), Amazon, Twitter and now Google has also joined the list. Google and its parent company Alphabet are planning to lay off more than 10,000 people.
Alphabet will check the performance of its employees through stack ranking and if they are classified as “poor performers” they will lose their jobs. According to a Forbes report, Google may also rely on these rankings to avoid giving out bonuses and stock grants. Google’s managers have reportedly been asked to classify 10,000 employees as “poor performers” in order to lay off 10,000 people. Alphabet has a total workforce of 187,000 people, one of the largest in technology.
A British hedge fund billionaire named Christopher Hone wrote a letter to Alphabet stating that Google had a bloated workforce and needed to downsize. He said that the company employs more people than needed. He also pointed out that compared to other BigTech firms, Alphabet pays its employees very high. The letter mentions how Google pays its employees 70 per cent more than Microsoft. Google pays 153 percent more when the salary paid by Google is compared to the salary offered by the top 20 tech firms.
The reason Google pays its employees more is not because the firm is more generous than other firms. Google pays more to crowdsource talent, which ensures other companies can’t hire these people and challenges Google’s monopoly. The New York Times has reported that Amazon is also planning to lay off 10,000 workers in order to preserve the long-term health of the company. “There will be more role cuts as leaders continue to make adjustments,” said Andy Jassy, Amazon CEO.
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