Cut 20% Jobs At Alphabet, Key Investor Tells Sundar Pichai

Hedge fund billionaire and investor Sir Christopher Hohn has informed Alphabet and Google CEO Sundar Pichai to cut back extra jobs and convey the headcount to 150,000, that may require him to slash 20 per cent of overpaid jobs in whole.

Google’s father or mother firm Alphabet has eradicated 12,000 jobs or 6 per cent of its workforce.

In a letter that has gone viral on social media, Hohn informed Pichai that the choice to chop 12,000 jobs is a “step in the best path”, but it “does not even reverse the very strong headcount growth of 2022″.

“I imagine that administration ought to intention to cut back headcount to round 150,000, which is in keeping with Alphabet’s headcount on the finish of 2021. This would require a complete headcount discount within the order of 20 per cent,” wrote Hohn, founding father of The Children’s Investment Fund Management (TCI) that holds a $6 billion stake in Alphabet.

The billionaire further said that the management should also take the opportunity to address excessive employee compensation.

“The median salary at Alphabet in 2021 amounted to nearly $300,000, and the average salary is much higher. Competition for talent in the technology industry has fallen significantly allowing Alphabet to materially reduce compensation per employee,” he argued.

In explicit, Alphabet ought to restrict stock-based compensation given the depressed share worth, Hohn added.

Over the final 5 years, Alphabet greater than doubled its headcount, including over 100,000 staff, of which over 30,000 have been added within the first 9 months of 2022 alone.

Last week, Pichai stated that he was “deeply sorry” for reducing the workforce by approximately 12,000 roles, and took “full responsibility for the decisions that led us here”.

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(This story has been edited by News18 employees and is printed from a syndicated news company feed)