According to reports, Google one of the major tech giants is planning to lay off employees in January 2025. This news is now making employees worried about the upcoming decisions to be made.
A recent report for Team Blind suggested that tech giant Google is planning to reduce its headcount in Q1 2025. Google isn’t the only one to continue with the layoff story. Several other major players in the industry decided to lay off employees in 2024 due to several factors. The list of factors behind layoff stories can be business restrictions, global competition, and the adoption of automation.Â
Reportedly, the employees of Google are worried about the layoff decision that can be brought into action in the first month of 2025. In addition to this it has been suggested that the company will be increasing the target layoffs for the lowest performing employees.
The Rationale Behind the Layoffs of GoogleÂ
The decision to make layoffs is part of a new performance management system Google is rolling out. It is expected to categorize about 6% of its workforce as underperformers, which has worried employees about job security.
The company has been under mounting pressure to improve efficiency and adapt to the rapidly changing market, which has been exacerbated by economic uncertainties and increased competition.
Recently, with these anonymous discussions on sites such as Team Blind, an increasing sense of unease among Google employees has started to emerge regarding job insecurity. Many have noticed what they feel is an escalating emphasis on performance metrics with “lower buckets” on which some employees fear being thrust. This is not groundless; the percentage of people in the “low performer” bucket has reportedly jumped 8% to 10% in recent appraisals.
Google’s anticipated layoffs are not occurring in isolation. The tech industry as a whole has been experiencing significant shifts, with many companies implementing cost-cutting measures and workforce reductions. In January 2023, Google itself laid off around 12,000 employees, marking one of the largest reductions in its history. These moves are often attributed to a combination of factors, including regulatory challenges, declining profits, and the need to streamline operations amid evolving market demands.
Alphabet saw a decline of 27%
Alphabet Inc, the parent company of Google saw a staggering decline of 27% in profits during the third quarter of 2023 from the same period the previous year. Such financial strain has led to calls for higher productivity and flexibility by management, such as CEO Sundar Pichai. The emphasis on performance management is viewed as a way of ensuring that the organization can stay competitive and be more effective in resource allocation.
The possibility of job losses makes an organization operate in uncertainty and fear. Most of the employees would have to live with extra levels of stress because they worry about their jobs and what they will do with themselves afterward. For most at Google, this threat of being put into a low-performing bucket creates yet another layer of nervousness.
Further, the new trend of the evaluation process can cause greater competition at work that urges people to constantly prove they are of value. There are, of course, good effects on innovation and efficiencies while pushing for excellence that would not result in burnout, however, firms may be too eager to emphasize greatness without a careful plan to ensure employees are kept productive as well.
