In the past, Google employees were given full bonuses in January, but this year the search engine giant will pay them 80% of their bonus checks in the current month and the remaining in March or April, reported CNBC based on documents seen.
The April payments will reportedly be in the second quarter allowing Google to spread costs.
Google is making a move to permanently push bonuses to March. The company said in a memo, “After 2023, full bonuses will be paid in March,” according to the report.
Reacting to the reports, a Google spokesperson shared with CNBC that employees were aware of Google’s plans. “This one-time 80 per cent bonus advance was extensively communicated to employees in May 2022 and in subsequent communications since, as part of the transition to our new performance management timeline.”
Google CEO Sundar Pichai is trying to cut expenses without laying off many employees. Unlike other big tech companies like Meta, Microsoft and Amazon, Google’s parent company Alphabet hasn’t had to lay off many workers. Instead, they’ve been cutting back on certain products and groups that aren’t doing well.
Recently one of Alphabet’s companies, Verily, which works in health sciences, announced it would reduce its employees by 15 per cent, which means that about 240 people will lose their jobs. In addition, the company has also reduced the number of employees working in its robotics unit, Intrinsic.
Reportedly, Google has been planning to change how it evaluates employees’ performance. The new system is designed so that more employees will receive a lower rating. However, some employees worry that this may be used as a way for the company to reduce its workforce without laying off workers. In addition, Google has also closed its gaming business, Stadia.