An American multinational technology company, Google is planning to fire nearly 10,000 employees. The layoffs will be on the grounds of ‘poor performance’.
The layoffs are nearly 6% of the total workforce. Google will use a ranking system and the lowest-ranked employees are expected to be fired from the company.
Since 2017 the company has almost doubled its workforce. The company hiring increased by 15% in 2020 alone. Christopher Hohn wrote a letter to the company late last week.
In this letter, he stated, “We are writing to express our view that the cost base of Alphabet is too high and management needs to take aggressive action.”
As per, Christopher Hohn Google employees are paid more in comparison to the rest of the industry. He also said that the hiring has outpaced the actual need of the company.
Google employs 1,87,000 employees. Earlier, Google also announced it will be slowing down the hiring process in the fourth quarter of the year.
The IT industries have been laying off employees google has joined the other IT companies in terms of layoffs. Most Recently, Twitter laid off 50% of its employee strength which is nearly 3500 post the Elon Musk takeover. Followed by Meta laying off 11000 employees.
Cisco will be laying off more than 4,000 employees. There are many leading IT companies that either laid off employees or froze new hiring including Snap, TikTok, and HCL Technologies.
The development of either layoff or hiring slowdown comes after IT companies, crypto exchanges, and financial firms cut out jobs and slow down the hiring process due to slow global economic growth caused by higher interest rates, and rising inflation.