Observed Signal · Nov 24, 2022 · Layoffs · Source: Trending Topics · Impact: 2/5 · Sentiment: Negative
Google Could Lay Off 10,000 Employees Amid Cost-Cutting
According to Forbes, Google may cut roughly 10,000 jobs, targeting employees classified as low-performing. Alphabet has introduced a new performance system called 'Googler Reviews and Development' (GRAD), which managers could use to rate up to 6% of staff as underperforming, up from the traditional 2%. Activist investor Christopher Hohn wrote to Alphabet urging workforce reductions, arguing that employees are overpaid and headcount is excessive. Alphabet employs nearly 187,000 people, and average compensation was $295,884 last year, about 70% more than Microsoft pays. Google CEO Sundar Pichai had warned employees in July about a more hostile environment requiring cost cuts and greater efficiency.
News about potential large-scale layoffs at Google/Alphabet signals a cost-cutting environment at a major technology and advertising platform, with indirect implications for the AdTech ecosystem, but it is not an adtech-specific product or policy change.
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Key Takeaways & Evidence Grounding
- Google may cut about 10,000 jobs, according to Forbes.
- Alphabet introduced the GRAD performance system to evaluate and potentially reduce staff.
- Managers were asked to classify up to 6% of employees as low-performing, compared with the traditional 2%.
- Activist investor Christopher Hohn urged Alphabet to reduce headcount and compensation.
- Alphabet's average employee compensation was $295,884 in the previous year, nearly 70% higher than Microsoft's.
Connected Companies & Entities
5 Entities mapped“Doch Forbes zufolge könnte Google nun einen schweren Einschnitt in die Belegschaft vornehmen....”
“Christopher Hohn, ein britischer Milliardär und aktivistischer Investor, hat einen Brief an Alphabet, die Muttergesellschaft von Google, ges...”
“Doch Forbes zufolge könnte Google nun einen schweren Einschnitt in die Belegschaft vornehmen....”
“und den angekündigten Entlassungen bei Amazon....”
“Das sei um fast 70 Prozent mehr als das, was Microsoft zahlt....”
Ontology Mapping & Concepts
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US Government Excludes Microsoft from Visa Program
The US government has barred Microsoft from participating in the permanent residency process for foreign workers with H-1B visas, accusing the company of abusing the program. Vice President JD Vance stated that Microsoft laid off 6,000 American employees last year while benefiting from 6,300 H-1B visa holders. The Department of Labor, led by Keith Sonderling, will not accept new permanent residency applications from Microsoft, as well as several consulting firms and Adobe. This action comes weeks before the midterm elections and reflects the Trump administration's broader criticism of the H-1B program, which it claims disadvantages American workers. Microsoft has not yet responded. The move could impact the tech industry's ability to retain skilled foreign talent.
US suspends Microsoft, Adobe from green card labor program
The Trump administration has suspended Microsoft, Adobe, and six other major tech firms—Capgemini, Cognizant, HCL, Infosys, Tata, and Wipro—from the U.S. Permanent Labor Certification program, which facilitates green cards for skilled foreign workers. Secretary of Labor Keith Sonderling cited active federal investigations and alleged fraud, noting that no new or pending applications from these companies will be accepted. Vice President JD Vance accused Microsoft of replacing laid-off workers with H-1B visa holders. Microsoft defended its practices, stating that most U.S. employees are American and that 80% of its H-1B petitions were for existing employees. The announcement was made during a White House summit on H-1B fraud, and the administration also plans to investigate nine universities, including Harvard, Yale, and Stanford, over student visa program abuse.
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