The wave of layoffs sweeping Silicon Valley is not over yet. The protagonist of the new round of layoffs seems to be finally Google's turn. According to CNBC's latest report, Google, which has always been known for its relaxed working atmosphere and employee care, has suddenly tightened its performance appraisal standards, and many employees will be given low performance ratings.
Inside Google, this reform is code-named the Google Review and Development Program (GRAD), and it will be launched for all employees. According to CNBC, Google announced its decision to adjust the performance review rules at a recent internal meeting, and executives attending the meeting also explained in detail the specific changes in the new rules.
Among them, about 6% of full-time employees may be given a lower rating, a full three-fold increase from before the reform. At the same time, the percentage of employees receiving the highest performance rating will also be revised down to 22 percent from 27 percent previously.
Performance downgrades will not only be related to employee bonuses and benefits, but will even be linked to the tail-end elimination system. Because of this, this change makes people worry that Google will follow in the footsteps of Amazon, Meta and other big companies, ushering in a new round of large-scale layoffs.
Although it is not as high-profile as its counterparts such as Meta and Amazon, it is not without warning that Google has tightened performance appraisal and even laid off employees.
At the all-hands meeting held on December 10, Google CEO Sundar Pichai was asked whether there would be layoffs. Pichai's answer at the time seemed rather ambiguous, and he did not make any guarantees to employees, only saying that "the future is difficult to predict." At the same time, Pichai also hinted that Google will adjust its various businesses and focus on key projects.
"What we're sure we need to do is sort out our priorities so that we can better deal with the economic storm."
As for the adjustment of performance appraisal rules, Fiona Ciccone, Google's chief personnel officer, also explained. Sicone believes that the creation of new standards is to hope that employees understand whether there is a gap between their performance and company expectations, and hope that employees will pay attention to it.
However, there are still many disputes within Google about this reform plan. Some employees also broke the news to the media. Sicone himself admitted to the senior management that the new assessment rules are not running smoothly, but insisting that changes are necessary.
Of course, the reform of assessment rules does not necessarily mean that Google will lay off employees. It is always performance that really determines the decision of high-level layoffs.
Unfortunately, judging from the latest financial report, Google's performance is indeed not optimistic. The latest report from the research firm Insider Intelligence also pointed out that the combined share of Google and Meta in the US digital advertising market will fall below 50% by the end of this year, the lowest record since 2017.
However, Google employees don't need to worry too much. After all, Google seems to care more about open source than cutting costs. The director of Google's advertising business recently said that the company is working hard to develop e-commerce advertising and privacy-first advertising businesses, hoping to get rid of growth anxiety.
Under the cold winter of the Internet, Google's life will certainly not be easy. But compared with Amazon and Meta, at least the former has not yet reached the stage of major layoffs. Finding a way out as soon as possible may be Google's last hope to resist the impact of the general environment.
