Sundar Pichai, CEO of Google, announced a significant decrease in corporate performance-based compensation for staff above the SVP level. The decision comes in the aftermath of the layoff of 12,000 Google employees, which has created a rising sense of uncertainty among staff. Pichai has stated that the layoffs were based on performance and were not arbitrary.
Does this mean a low salary for the employees?
In a recent town hall meeting, CEO Sundar Pichai revealed a significant decrease in yearly bonuses for all employees beyond the senior vice president level. Pichai’s remuneration is expected to be reduced, given his pay is tightly connected to the company’s success. While Pichai did not precisely specify a salary decrease, the bonus reduction will also apply to him, lowering his take-home pay for the year.
The announcement comes on the heels of Google’s plan to lay off 12,000 employees in the United States. Many employees were taken aback by the statement, with others learning of their layoffs only after their ID access went from green to red. Pichai’s income increased significantly in 2020, but his net worth subsequently fell to Rs 5,300 crore.
Is this decrease in compensation affecting the employees?
Many employees are concerned about their future at the firm as a result of the bonus decrease and layoffs. Employees are feeling increasingly insecure, and there is a growing impression that the corporation is attempting to save expenses. On the other hand, Pichai has emphasised that the company’s focus is on innovation and has asked the teams to remain dedicated to the company’s purpose. Watching how the corporation handles this difficult moment and how the employees are affected would be interesting. Many hope the bonus cut, layoffs, and severe economic conditions will not harm employee morale and deter teams from pursuing their goals.
Is India the next target for mass firing?
Other areas, such as India, are anticipated to see layoffs in the following weeks. The releases have been complex for the firm since the economy has been struggling. Pichai has stated that the firings were not arbitrary but based on performance assessments.