Google CEO Sundar Pichai said at a companywide meeting that all senior vice presidents “will see a very significant reduction in their annual bonus” this year. The announcement came after the company announced the largest round of layoffs in the company’s 25-year history, and fired 12,000 employees.
“The more senior you are, the more your compensation is tied to performance,” Pichai said. “You can reduce your equity grants if performance is not great.”
He did not, however, provide more details.
Before the layoffs, Google had decided to pay out 80 percent of bonuses in January with the rest expected in March or April. Earlier, the full bonus was paid in January, CNBC reported.
In the meeting, Sundar Pichai also requested employees to remain motivated as Google faces stiff competition in areas such as artificial intelligence, while also trying to explain why those who were laid off were removed from the internal system without warning.
“I understand you are worried about what comes next for your work,” Pichai said. “Also, very sad for the loss of some really good colleagues across the company.... It’s evident how much you all care about your colleagues and the company... I know it will take a lot more time to process this moment and what you heard today as well.”
Read more: Lay off 1.5 lakh Google employees, hedge fund billionaire tells Sundar Pichai
Speaking about the heightened competition in AI, Pichai reminded employees that Google has important work ahead, especially with the introduction of AI chatbot ChatGPT.
"It will be an important year given the rapid advancements in AI... There’s a paradigm shift with AI and I think, with the concentration of talent we have and work we will do here, will be a big draw and I hope it will continue to be,” Pichai said. “We have to keep earning it.”
Read more: Alphabet cuts 12,000 jobs after pandemic hiring spree, refocuses on AI
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