Industry leaders like Google and Meta seem to be avoiding firing their employees. However, these behemoths are certainly redesigning their internal structure, which can lead to layoffs, thereby automatically cutting employee overheads.
Most tech giants experience some degree of growth stagnation. Increasing competition, coupled with tougher economic conditions, has forced companies to lay off employees, impose severe restrictions, and forced many to rethink their goals and objectives. Google and Meta have yet to confirm that they are laying off some of their workforce. On the other hand, these companies seem to take a slightly different approach.
Instead of terminating contracts and firing employees from their jobs, Meta actively reorganized its internal departments . While it may sound encouraging, the company appears to be offering affected employees limited time to apply for other positions at the company, according to The Wall Street Journal.
Employees who do not have an active project are essentially unemployed, but not formally fired. This tactic makes it difficult to determine the extent of the reduction. Meta may try to cut about 10% of operating costs in the next few months. A company can achieve its cost-cutting goal by cutting employee overheads and reducing advisory budgets.
While Google has a diverse portfolio, the company is taking some proactive steps to get through the tough times ahead. The company has asked some of its employees to apply for new jobs if they want to stay with the company. Affected employees have 90 days to join active projects. It appears that most of the affected employees were from Area 120, Google’s startup incubator program.
Almost every company talks about reorganizing their priorities and reallocating funds to promising projects while postponing or postponing others. Clearly, despite their size, neither Google nor Meta feel immune to the expected economic downturn.
Source: The Wall Street Journal.