Another major tech titan is bracing for thousands of layoffs.
GOOGL from Alphabet Inc.,
Google is considering laying off 10,000 — or 6% of its global workforce — based on a ranking system that would eliminate the lowest-ranked “underperforming” employees, according to a report in The Information.
“Earlier this year, we launched Googler Reviews and Development (GRAD) to help employees develop, coach, train and career progress throughout the year. The new system helps to set clear expectations and provide employees with regular feedback,” a Google spokesperson said in a statement to MarketWatch.
The spokesperson declined to comment on possible job losses.
For Google, which has avoided the bloodshed of many of its Big Tech brethren, a collapsing advertising market and grim macroeconomic conditions leave it no choice but to tighten its belt. Alphabet executives have said it is essential to make the company 20% more efficient. In July, Alphabet CEO Sundar Pichai rolled out Simplicity Sprint to boost efficiency during a shaky economy.
Like many of its tech peers, Google has been hiring more during Covid in recent years, leading some to warn that headcount and operating costs were too high. One critic, billionaire activist investor Sir Christopher Hohn, claimed that Alphabet’s payroll was too high and should be slashed.
The ever-growing list of technology companies laying off employees is growing by the day. On Tuesday, HP Inc. HPQ,
said it plans to lay off 4,000 to 6,000 workers over the next three years. Last week, Cisco Systems Inc. CSCO,
announced its intention to cut 5% of its employees. Earlier this month, Facebook parent company Meta Platforms Inc. META,
said it is cutting more than 11,000 jobs. Amazon.com Inc. AMZN,
Intel Corp INTC,
and Roku Inc. ROKU,
are, among other things, cutting back.
For more see: HP, Amazon, Cisco, Roku, Meta, Twitter, Intel: these are the companies in the spotlight
Meanwhile, drama continues to unfold at Twitter Inc., where new owner Elon Musk has led thousands of layoffs and mass layoffs in recent weeks that have seriously damaged the company’s reputation and operations.
The onslaught of cutting tech jobs and freezing vacancies was inevitable after a surge in sales and profits during Covid prompted tech companies to hire at a breakneck pace. Now they are going through a correctional phase amid a darkening financial climate.
“This is just beginning [layoffs]longtime software executive Tom Siebel, who is now CEO of C3.ai Inc. AI,
told MarketWatch. “Before this is over, everyone will feel the sting, big companies and small ones. It will be tough, but the industry will be healthy once we get through it.”
Shares of Google were up 1% in late morning trading on Wednesday.