Alphabet CEO Sundar Pichai, who made $226 million in revenue last year, sent an email to employees in January announcing a significant 12,000 job cuts.
In a message, the recently-rich Pichai said his workforce decline “has weighed heavily on me,” adding, “He takes full responsibility for the decisions that have brought us here.” I’m here,” he reassured the staff, who will soon lose their jobs.
difficult decisions await
Senior staff at Pichai and other tech companies metathey are collecting fat salaries, even though ordinary workers bear the brunt of the drastic cuts.
“We have decided to reduce our workforce by approximately 12,000,” Pichai wrote. January“This means we are saying goodbye to the incredibly talented people we have worked so hard to employ and have loved working with.
“The fact that these changes affect the lives of Googlers weighs heavily on me. I take full responsibility for the decisions that have brought us here.”
In 2022, Pichai has a healthy income of £2 million and $6 million in personal security. Pichai is currently collecting more than 808 times his average Google employee salary.
Google $GOOG announced plans to cut 12,000 positions (6% of its workforce), but CEO Sundar Pichai is making more than $200 million (more than 800 times the median employee salary).
Is a $200 million salary justified as it is a valuable asset to the company?
— Andrew Lokenauth (@FluentInFinance) April 22, 2023
alphabetThe board of directors ties Pichai’s compensation to short-term financial success and encourages the CEO to aggressively cut costs. One of the fastest ways to achieve that, according to the “Corporateism 101” handbook, is to cut staff. If Pichai can lead Alphabet to his 75th percentile of the S&P 100, on top of everything else, he’s been instructed to receive a $100 million bonus.
This incentive may result in more reductions in the future. Pichai should consider what matters most. The weight of further cuts, or the weight of his own wallet.
Also Read: Meta Plans New Job Cuts to Kick off Year of Efficiency
workers are angry
Pichai isn’t the only one to receive massive rewards. Silicon Valley staff are increasingly furious at the disconnect between executives and other employees.
It was later leaked to the media during last Thursday’s painstaking Q&A outlet include vox, Meta CEO Mark Zuckerberg has come under fire from angry employees about ongoing job cuts and the company’s so-called “Year of Efficiency.”
In particular, employees questioned why Meta executives have avoided the consequences of mismanagement of the company. In April, he said 4,000 staff members were cut from Meta’s payroll, but the executive remains safe in his position.
Zuckerberg, who nominally paid himself a dollar last year, tried to shoulder most of the blame. However, he noted macroeconomic conditions and “unprecedented volatility.” Zuck’s salary is decidedly modest, but his $1 million spending account isn’t much.
in the financial black parade
You don’t need to look much further than Zach to find a bevy of meta execs who continue to amass hefty bonuses for their controversial efforts. Despite flip-flopping to AI.
Newly appointed CFO Susan Li, one of the C-level classes doing well at Meta, received a decent bonus of $575,613. But she wasn’t the team’s best reward. CPO Christopher Cox said he earned a bonus of $940,214, while COO Javier Olivan said he had to supplement his salary with $786,552. CTO Andrew Bosworth said he received $714,588 and his COO Sheryl Sandberg, who left the company in September, received £298,385.
“We are in different worlds and had to make some changes,” Zuckerberg told staff in an opening statement last Thursday.
This comment certainly contained a hint of truth. From an employee’s perspective, unruly executives seem to operate on another planet.