Alphabet CEO Sundar Pichai in a recent town hall meeting announced a ‘significant reduction’ in annual bonuses for all roles above the senior vice president level. Pichai himself is likely to see a reduction in salary, as his compensation is closely linked to the company’s performance. While Pichai did not explicitly mention taking a salary cut, the reduction in bonuses will be applicable to him as well, reducing his take-home compensation for the year.
The announcement follows Google’s decision to lay off 12,000 employees in the US. The layoffs are expected to reach other markets, such as India, in the coming weeks. This has been a difficult period for the company, as the layoffs have come amid tough economic conditions. Pichai has assured that the layoffs were based on performance ratings and were not arbitrary.
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