The phrase “layoff” is the most terrifying. The work market is volatile, especially in the aftermath of the pandemic. Downsizing is never a good idea because it can harm both employees’ and companies’ well-being.
Due to the escalation of the financial crisis, major corporations such as Amazon, Twitter, and many others have begun to reduce their workforce in 2022. Google, on the other hand, was far from idle. This year’s conclusion, Google announced the layoff of a large number of employees. The major Google layoff is expected in early 2023.
Cost Cutting
The CEO of the company discussed this topic in order to cut costs and save the company from a major disaster. Every techie’s desire is to land a job at Google. This is due to the company’s generous salary, perks, and stock bonuses. However, Google opted to reduce personnel gradually sooner in 2023, focusing on lower-level category employees. According to insiders, Google layoff are based on performance difficulties, so the impacted employees will not receive any compensation for the unexpected job loss.
According to multiple sources, Google will gradually remove low-level category employees beginning in 2023. Specifically, the performance evaluations acquired from Google Reviews and Development (GRAD). The management is likely to identify those ten thousand employees internationally using this GRAD method.
It appears that 6% of employees fall into the low-performance category. According to the sources, the headcount appears to be ten thousand people worldwide, including India. To be sure, Google CEO Sundar Pichai hinted at potential layoff in recent meetings, but there was no formal confirmation.
Looking back on this year, the organization has reduced the number of freshmen and experienced individuals hired. This is also attributable to the elimination of unnecessary expenses. Despite the fact that the corporation has not laid off any employees this year, executives have been warned to be more efficient. Employees are concerned about their job security and wonder if they are among the ten thousand employees.
Layoff Hurdles
This massive layoff at Google is likely the first of its kind in history. Employees who do not fall into the bad performance category should not believe their jobs are safe. Because there are numerous hurdles for staff to meet year-end deadlines and the newly implemented grade system technical issues. Before deciding to lay off employees, the corporation reduced unneeded expenses such as real estate costs, reimbursement, benefits, and travel costs. The corporation had also considered closing one of its Detroit branch offices.
In addition, the corporation was initially concerned about shutting down a few initiatives this year, which occurred in September. Due to a lack of positions, the Farmington office project was halted, and nearly eight people were sacked as a result. Because of the company’s emphasis on cost-cutting, management has felt compelled to restructure the organization. As a result, several employees lost their higher-level positions; however, they would continue to work.
Employees, including those who have worked for the company for decades, are suffering as a result of the harsh layoff situation. Further, employees who have been underperforming, on the other hand, will be let go. Employees with good grades, on the other hand, may be concerned about losing their jobs in the near future. This large layoff will demoralize employees and undermine their faith in the organization.
Goldman Sachs Layoff
Many Goldman Sachs employees may get distressing news in 2023. Goldman Sachs’ CEO might start layoff in January 2023. Goldman Sachs is apparently considering laying off 8% of its 49,000 employees, which may result in 4,000 job losses. According to The Guardian, it is also proposing a 40% reduction in its bonus pool.
According to S&P Global Market Intelligence analysts, it will make $12 billion in net profits in 2022 and $13 billion in 2023, according to The Guardian. Except for its record profits of $21 billion in 2021, that would be the highest year profit since the global financial crisis in 2009. However, the bank has been under pressure to increase its stock market valuation, which is lower than that of some of its US investment bank competitors, such as Morgan Stanley.
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