San Francisco, August 13
As major tech companies begin to lay off workers in the global economic downturn, Google executives have reportedly warned workers to either increase performance or prepare to quit, as “there will be blood in the streets” if the next quarterly earnings are not good .
In a company memo seen by Insider, Google Cloud sales management has threatened employees with a “major review of sales productivity and productivity in general” and that if next quarter’s results “don’t look up, there will be blood in the streets.” If results for the third quarter “do not look up, [then] there will be blood in the streets,” according to a message relayed to the sales team. The warning was first reported by Insider.
Google employees are “fearing layoffs”[ads1]; after the company quietly extended its hiring freeze this month without making an announcement, The New York Post reports.
The company has now reportedly warned employees of layoffs if they do not produce results.
Alphabet and Google CEO Sundar Pichai told employees late last month that they need to improve productivity due to severe economic headwinds.
Pichai said he wanted to solicit ideas from his employees on how to get “better results faster.”
“There are real concerns that our productivity as a whole is not where it needs to be for the number of employees that we have,” he said.
In July, Google halted hiring for two weeks to assess headcount needs and determine future action. The company previously announced it would slow hiring for the rest of the year.
According to Pichai, “Clearly we face a challenging macro environment with more uncertainty ahead.”
Alphabet, the parent company of Google, reported weaker than expected earnings and revenue for the April-June period (Q2).
Turnover growth slowed to 13 per cent from 62 per cent in the same quarter last year.
Other tech companies that have either laid off employees or slowed hiring in the current economic downturn include LinkedIn, Meta, Oracle, Twitter, Nvidia, Snap, Uber, Spotify, Intel and Salesforce, among others.