Google to lay off 10,000 employees based on performance: Report
Hedge fund billionaire, Christopher Hohn, has written a letter to Google parent company - Alphabet advising to cut the number of employees in the company. The UK investor has also reportedly said that the company pays excessively to its employees as compared with other digital companies.
Tech behemoth Google is planning to implement a performance improvement plan that will eventually lead to layoffs of 10,000 employees. According to a report from Hindustan Times sister publication LiveMint, employees who ‘score low’ will be asked to resign.
Google has asked its managers single out 6% of staff, or 10,000 employees, who according to then are poor performers. In an earlier notice, supervisors were directed to cut down the inflated scores.
Apart from using it to trim the workforce, tech giant’s managers could also employ the performance ratings to lower the perks like bonuses and stocks- offered to employees.
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The decision is said to be taken after pressure from an activist hedge fund coupled by market slump requiring cost cutting measures.
The report states that a hedge fund billionaire, Christopher Hohn, has written a letter to Google parent company - Alphabet advising to cut the number of employees in the company. The UK investor has also reportedly said that the company pays excessively to its employees as compared with other digital companies.
Hohn holds that the company’s headcount is “excessive” as compared to historical hiring patterns and does not meet the current business situation. He contends Google can be adequately administered with many fewer highly compensated professionals, report added.
