Google to lay off underperforming workers in 2023, May use performance management system

Google has introduced a new performance management system that may be used to lay off thousands of underperforming employees. The system will be implemented early next year.

A report by the tech publication The Information said Google's managers could also use the performance ratings to avoid paying employees bonuses and stocks. "Under the new system, managers have been asked to categorise 6 percent of employees, or roughly 10,000 people, as low performers in terms of their impact on the business," said people close to the matter.

The publication further said managers were expected to put 2% of the employees in that bucket as per the previous performance review system. Google is reportedly willing to let go of 6% of its workforce. This will be around 10,000 people.

Google is generally known for its employee-friendly approach but earlier announced a slowdown in the hiring process in the fourth quarter of the year.

Google has seen a major spike in hirings in the last quarter. Earlier, experts have criticised Google's inflated workforce and salaries. Billionaire activist investor Christopher Hohn observed that Google employees are paid a lot more in comparison to the rest of the industry and hiring has outpaced the actual needs of the company.

Several tech firms have resorted to layoffs due to the looming economic slowdown. Amazon, Twitter, Meta, and Microsoft have already begun the process. Last week, the New York Times reported that Amazon is planning to let go of around 10,000 employees in corporate and technology roles. Meta has announced that it will lay off about 11,000 employees which accounts for 13% of its global workforce.