Alphabet CEO Sundar Pichai in a recent town hall meeting announced a ‘significant reduction’ in annual bonuses for all roles above the senior vice president level. Pichai himself is likely to see a reduction in salary, as his compensation is closely linked to the company’s performance. While Pichai did not explicitly mention taking a salary cut, the reduction in bonuses will be applicable to him as well, reducing his take-home compensation for the year.
The announcement follows Google’s decision to lay off 12,000 employees in the US. This news came as a shock to many employees, some of whom found out about their layoffs only when their ID access turned from green to red. Pichai’s salary had seen a significant increase in 2020, but his net worth has since dropped to Rs 5,300 crore.
The layoffs are expected to reach other markets, such as India, in the coming weeks. This has been a difficult period for the company, as the layoffs have come amid tough economic conditions. Pichai has assured that the layoffs were based on performance ratings and were not arbitrary.
The news of the bonus reduction and layoffs has left many employees uncertain about their future at the company. There is a growing sense of insecurity among the employees and an increasing sense that the company is trying to cut costs. However, Pichai has emphasised that the company’s focus is still on innovation and has asked the teams to stay committed to the company’s mission.
It remains to be seen how the company navigates this difficult period and how the employees are impacted. Many are hopeful that the bonus reduction, layoffs, and tough economic conditions will not hurt the morale of the employees and will not discourage the teams from continuing to pursue their goals.
