Alphabet, the parent company of Google, announced plans to lay off 12,000 employees worldwide, affecting 6% of the company’s workforce. Let’s see what Google’s offer to laid-off employees as well. In an email to staff, CEO Sundar Pichai cited “a different economic reality” as the reason for the layoffs.
The company will provide impacted employees with a severance package including pay during the full notification period, severance pay starting at 16 weeks salary plus two weeks for every additional year at Google, accelerated vesting of GSU, 2022 bonuses, remaining vacation pay, and 6 months of healthcare, job placement services, and immigration support. Outside the US, the company will provide support in accordance with local practices.
Additionally, Pichai stated that the decision to undertake this significant economic reorganization was not taken lightly and that the company is committed to supporting its employees during this difficult time. He also emphasized the company’s ongoing efforts to invest in long-term growth areas and to adapt to the rapidly changing business landscape. The layoffs are expected to take place over the next few months.
The CEO Sundar Pichai further mentioned in the mail what the company will be offering to the employees with severance package:
– We’ll pay employees during the full notification period (minimum 60 days)
– We’ll also offer a severance package starting at 16 weeks salary plus two weeks for every additional year at Google, and accelerate at least 16 weeks of GSU vesting
– We’ll pay 2022 bonuses and remaining vacation time
– We’ll be offering 6 months of healthcare, job placement services, and immigration support for those affected.
– Outside the US, we’ll support employees in line with local practices.’
It’s worth noting that the job cuts come as Alphabet faces increasing pressure to improve its financial performance and boost its stock price. The company has also been dealing with the ongoing economic uncertainty caused by the COVID-19 pandemic. The company’s Q4 2020 earnings report showed that its operating income fell by 31% compared to the same period in 2019, due to increased spending on cloud computing and other initiatives. The layoffs are seen as a cost-cutting measure to help the company improve its financial situation and remain competitive in the market.