As the tech layoffs in the United States intensified, Google employees couldn't sit still, thinking that they might be the next victims. So far, Google has been unaffected by mass layoffs in the U.S. tech industry. But there are signs, including some information from Google employees, that anxiety is rising inside Google.
Alphabet executives recently highlighted the need for the company to become more focused, reduce costs on various projects and increase the company's efficiency by 20%. Recently, Google has also made adjustments in performance appraisal. Some employees also said that the reduced travel budget and reduced benefits could be the precursor to bigger moves.
In August, Snap announced a 20% layoff. Earlier this month, Meta announced layoffs of 13 percent, about 11,000 people. In addition, Twitter also announced layoffs of 50%, about 3,700 people. Today, HP announced that it will cut up to 6,000 jobs in the next three years.
While Google's business hasn't been hit as hard as its peers, a potential recession, soaring inflation, and rising interest rates are having a clear impact on Google. Google said last month that YouTube's ad revenue declined year-over-year. Google also said at the time that it would significantly reduce employee growth in the fourth quarter.
Google's new performance management system, scheduled to start early next year, could pave the way for Google's human resources department to expel underperforming employees, people familiar with the matter said today. Additionally, executives can use the system to avoid paying bonuses and stock to employees.
Under the new system, Google managers are required to classify 6% of employees, or about 10,000 people, as underperforming employees. Previously, this proportion was only 2%.