After Twitter and Amazon, Google parent firm Alphabet is set to be the latest company to lay off its "poorest performing" employees, according to an Economic Times report that cited The Information.
Google managers have been instructed to identify the poorest-performing six per cent of staff that translates to roughly 10,000 people. The move reportedly comes in response to the pressure from hedge fund investors.
As per the report, this system of identifying the poorest-performing six per cent of employees - an increase from the usual two per cent - would give managers the chance to not pay bonuses.
“As layoffs spread across Silicon Valley, Google has stood out by not cutting employees so far. But as outside pressure builds on the company to improve the productivity of its workers, a new performance management system could help managers push out thousands of underperforming employees starting early next year,” the report said.
Google hired roughly 1.56 lakh people at the end of 2021. Layoffs are expected to begin in early 2023, the report added.