The CEO of Google directed that bonuses for upper management be reduced in order to lower expenses
According to sources present at a meeting, Google CEO Sundar Pichai announced plans to decrease bonuses for top managers, including those at the senior vice president level and above, at the end of the year, as reporting WSJ. This move is intended to cut costs for the company, though the amount of the reduction in bonuses has not been disclosed. The Wall Street Journal notes that these managers typically receive substantial year-end bonuses and that their annual salaries can exceed $550,000. The decision to reduce bonuses is a necessary measure in light of the current economic downturn.
Additionally, Google has previously confirmed that it will be laying off “most of the Area 120 team” which is an incubator program that allows employees to work on outside projects. Three of the projects will be transferred to Google, while the remaining teams will be let go. Google has also announced plans to lay off up to 12,000 employees, a reduction of 6% of its staff.