Google joined the list of prominent tech giants like Microsoft, Facebook and Amazon to conduct layoffs last week. Its parent company Alphabet Inc decided to lay off a total of 12,000 employees. Google has now coined the term “Golden 12K” for the severance pay offered to Google employees who were laid off. According to a letter shared by Google’s CEO Sundar Pichai, these are the benefits for the employees affected by the layoff:
Google will pay the fired employees during the notice period (minimum 60 days). The laid-off staff will receive 16 weeks’ severance and an additional two weeks of pay for each year they’ve worked at the company. The company will offer bonuses for the year 2022 and the remaining vacation time as well. Google will also take responsibility for helping affected employees with six months of healthcare, job placement services and immigration support.
According to reports, all these benefits have been announced only for employees living in the United States. Employees who are working from outside will get support in line with the local practices.
Apart from these layoffs, Google has also subjected its senior executives to pay cuts as part of the company’s cost-cutting measures. As quoted by Business Insider, Pichai said, “All roles above the senior vice president level will witness a very significant reduction in their annual bonus. For senior roles, the compensation is linked to company performance.” It is not clear how Pichai’s pay cut is going to be. He has not yet responded to this question when asked by the media.
The question remains why one of the prominent tech giants Google took this drastic step. As stated in a report by CNBC TV18, Google’s parent company Alphabet Inc has been struggling with slow growth and recession risks as the tech market adjusts to the post-pandemic market.
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