The possibility of another restructuring is raised at Google, which has gone through the biggest layoff since its founding.
According to related industries in Silicon Valley, California, Google announced staff reductions on the 20th, but there are rumors from inside and outside the company that the restructuring is not over yet.
On the 20th, Alphabet, the parent company of Google, announced plans to cut about 6% of all employees, and notified 12,000 people to be laid off in bulk.
According to the industry, the possibility of additional redundancies is being discussed.
In the industry, it was said that the consulting firm was initially talking about the need for a 20% reduction in staff, but in reality, it was only reduced by 6%, so there is the possibility of additional restructuring, and internal concern is grow
Alphabet’s affiliates, including Google, have about 200,000 employees, for a total of 40,000.
Excluding the first round of redundancies of 12,000, the number of additional targets is around 28,000.
The first round of restructuring includes a high income earner with an annual salary of 1.2 million dollars and our money of 1.45 billion won.
According to the officer, there are concerns that relatively good evaluations were notified of the dismissal at the time of the last dismissal, so there is concern that next time we will weed out those who have been seriously undervalued.
There are concerns that the first round of redundancies is a leading step towards a full second round of restructuring.
This comment also appeared in a recent letter to Google executives from hedge fund TCI, an Alphabet investor.
TCI sent a letter to Alphabet CEO Sundar Pichai on the 20th, after Google announced plans for layoffs, urging him to further cut staff and spending.
The hedge fund called the layoff decision a “step in the right direction” but said managers still needed to “go further” to cut staff numbers.
At the same time, it was emphasized that the number of employees should be reduced to around 150,000, which requires a 20% reduction in personnel.
He also called for workers’ wages to be reduced, saying that “excessive compensation” given to workers should also be tackled.
Alphabet has been avoiding staff cuts based on its strong market share in search, but is taking a direct hit as digital ad sales are slowing due to fears of an economic recession.
In results announced last October, sales fell 27% year-on-year to $13.9 billion, failing to meet market expectations.
(Photo = Getty Image Korea)
