Another major tech titan is preparing for thousands of layoffs.
GOOGL by Alphabet Inc.,
Google is considering 10,000 layoffs — or 6 percent of its global workforce — based on a ranking system that would weed out the lowest-ranked “underperforming” employees, according to a report from The Information.
“Earlier this year, we launched Googler Reviews and Development (GRAD) to aid employee development, coaching, learning and career advancement throughout the year. New system helps set expectations clear and provide employees with regular feedback,” a Google spokesperson said in a statement to MarketWatch.
The spokesman declined to comment on potential job cuts.
For Google, which has avoided the bloodletting of most of its Big Tech brethren, the ad market collapse and dismal macroeconomic conditions give 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 launched Simplicity Sprint to boost efficiency during a shaky economy.
Like many of its tech peers, Google has ramped up hiring in recent years during Covid, leading some to warn that its workforce and operating expenses were excessive. One critic, billionaire activist investor Sir Christopher Hohn, said Alphabet’s payroll was too high and should be slashed.
The ever-expanding list of tech companies losing workers is growing by the day. Tuesday, HP Inc. HPQ,
said it plans to lay off 4,000 to 6,000 employees over the next three years. Last week, Cisco Systems Inc. CSCO,
announced plans to cut 5% of its workers. Earlier this month, Facebook parent company Meta Platforms Inc. META,
he said it is eliminating more than 11,000 jobs. Amazon.com Inc. AMZN,
Intel Corporation INTC,
and Roku Inc. ROKU,
they are also cutting.
For more information, see: HP, Amazon, Cisco, Roku, Meta, Twitter, Intel: here are the companies in the spotlight of the layoffs
Meanwhile, drama continues to unfold at Twitter Inc., where new owner Elon Musk has overseen thousands of mass layoffs and resignations in recent weeks that have seriously damaged the company’s reputation and operations.
The onslaught of tech job cuts and hiring freezes was inevitable after soaring revenue and profits during Covid drove tech companies to hire at a breakneck pace. They are now going through a corrective phase amid a dark financial climate.
“This is just the beginning [layoffs]”, longtime software executive Tom Siebel, who is now CEO of C3.ai Inc. AI,
he told MarketWatch. “Before all of this is over, everyone will feel the sting, big and small companies. It’s going to be tough, but the industry will be healthy once we get over it.”
Shares of Google closed up 1.45% on Wednesday.