Google to lay off 10,000 employees based on performance: Report
Alphabet inc, Google’s parent company, has received a letter from Christopher Hohn to cut the number of employees in the company. The UK investor has also reportedly said that the company pays excessively to its employees compared to other digital companies.
According to the reports, the employees will be laid off based on their performance report as the tech behemoth is implementing a performance improvement plan for the employees.
Google has generated an order asking managers to single out 6% of staff, or 10,000 employees, who are comparatively poor performers.
A notice was sent earlier instructing supervisors to reduce the inflated ratings.
Using performance reviews, the tech giant’s managers may reduce employee benefits, such as stock options and bonuses.
According to reports, Google came to this decision in response to pressure from an activist hedge fund and a market downturn that necessitated cost-cutting measures.
In Hohn’s view, the company’s headcount is “excessive” compared to historical hiring patterns. As a result, he contends that Google can be adequately administered by a smaller number of highly compensated professionals, according to the report.