Posted on 11/23/2022 8:19:53 PM PST by libh8er
Google is going to implement a performance improvement plan to gradually let go of 10,000 employees, multiple media reports suggest. The move is reportedly in response to pressure from an activist hedge fund, unfavourable market circumstances and the need to reduce expenses. Employees who receive low performance ratings will be let go.
In contrast to the customary 2%, Google managers have been instructed to identify 6% of staff, or 10,000 people, as bad performers. Supervisors were instructed to reduce the inflated scores in a previous notification.
Hedge fund billionaire Christopher Hohn has argued in a letter to Alphabet that the number of employees in the company needs to be reduced. The UK investor has also told Google's parent firm that its employees are paid excessively compared to other digital companies.
Hohn claims that the company's headcount is "excessive" in comparison to historical hiring patterns and does not meet the requirements of the present business environment. He asserts that the search engine can be effectively administered with many fewer highly-compensated specialists.
According to a US Securities and Exchange Commission report, the average salary for an Alphabet employee in 2021 was around $295,884. The salary exceeded what Microsoft paid its staff by over 70%. Alphabet paid its employees 153% more than what the 20 largest tech companies in the United States paid their employees.
Hohn’s views seem uncannily similar to Elon Musk's concept for Twitter. Many well-known US-based digital businesses like Twitter, Amazon and Meta, are trying to save costs. Just over a month ago, the majority of businesses reported their largest-ever layoffs. In addition to Twitter losing more than one-third of its personnel, Meta laid off roughly 11,000 workers. It's anticipated that Amazon will keep cutting staff far into 2023.
(Excerpt) Read more at livemint.com ...
I’d suggest Proton Mail. Its not subject to the Big Tech censors or cancellation.
Cool.
So Dims, people should learn to, what? Code was it? How’s that working out?
If you are over 50, you need to double in your mind what current salaries are. My salary from 10 years ago is only decent now, where it was exceptional. So much so, that I have decided to look for new employment, after many years with the same company to see what is out there.
I have been shocked to learn what some 30 something year old non managers are getting now from some companies.
How much? Tell us?
I meant to add that $200K is a relatively low salary these days.
$185K at an insurance company in IT
$175K at a bank in some starting analysis role
$150K base at a leading CRM solution in existing customer account sales.
These are known examples in my extended family from just the last year. None of those people are managing others, and the age ranges are 25 - 37.
And these are all in the southeast. Not Silicon Valley.
what kind of degress do they have?
Not even if they sit around a gossip all day, never performing any work?
The bell curve will eventually change shape.
What they are really doing is getting rid of higher paid workers.
Undergraduates from Southern state schools
Computer Science
English major/MBA
Education major
While I'm at it, the reporter in this story seems to have some trouble with reading comprehension and/or statistics. A separate report from a credible source wrote:
Alphabet Inc. reported median employee compensation of $273,493 for 2020, an increase from $258,708 in 2019, according to company filings. The figure is well above the median employee pay of $111,130 for the top 20 U.S. publicly traded information technology firms by market capitalization in 2020. To determine its median employee, Alphabet analyzed all its workers, excluding its CEO, as of Dec. 31, 2020, and used base salary and actual bonus as the main compensation metrics. Alphabet annualized wages and salaries for employees that were not employed for the full year to calculate its median employee compensation.
This is a little better - the median isn't susceptible to extreme values biasing the metric, as can happen with the average. Further, the metric is TOTAL COMPENSATION and not just base salary.
Nonetheless, if Amazon's MEDIAN total comp is about $300k, many of us are in the wrong business. OR, they're bloated and the hedge fund guy has a point.
Wow, I need a 100% raise!!!
Forced ranking totally destroys morale
That was the Jack Welsh method at GE. I always HATED that approach. I would never work for a company that was that cruel, or stupid enough to admit that their hiring practices were so bad that they failed by ten percent every year.
That’s an often overlooked point. Companies typically do not want to take on employees at a salary much less than what they were making before as they know they will be job hunting from day one.
Will that include the CEO?
companies need to turn over the bottom 5% every year to stay healthy
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