Google will reduce costs by cutting bonuses to top managers

Google will reduce costs by cutting bonuses to top managers


Google CEO Sundar Pichai has announced that Google employees at the senior vice president level and above will receive a reduction in year-end bonuses as part of a cost-cutting program. About it informs The Wall Street Journal, citing the words of those Google employees who were present at this statement by the head of the company.

Annual bonuses make up a significant portion of the pay package for Google employees. At the same time, the base salary, for example, for the vice-presidents of the company may exceed $550,000 per year, writes WSJ. The size of the cuts is not specified.

According to the publication business insiderthe statement about the reduction in bonuses was made by Sundar Pichai during the general meeting of employees, where the issue of large-scale reductions was discussed, announced parent company Alphabet last week. Commenting on this issue, Mr. Pichai said that in recent years they have hired a large number of employees and now, in the midst of an economic downturn, they are forced to lay off 12 thousand people, which is 6% of the entire staff of the company. At the same time, he stressed that he takes full responsibility for this strategic mistake of the leadership. And "a very significant reduction in the amount of the annual bonus," according to him, is one of the consequences of the error.

Alena Miklashevskaya



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