After having recently announced mass layoffs that impacted around 6 per cent of its workforce, tech giant Google has now revealed that senior executives at the firm will take a pay cut as part of the company’s cost-cutting measures. The layoff announcement, made last week, will affect about 12,000 employees.
Google CEO Sundar Pichai clarified that the supposed cut would “be a very significant reduction in their annual bonus”. The clarification came after Pichai was questioned during a townhall meeting on how senior staff like him will take responsibility for the mass layoff.
“All roles above the senior vice president level will witness ‘very significant’ reduction in their annual bonus. For senior roles, the compensation is linked to company performance,” Business Insider quoted Pichai as saying.
While announcing the mass layoff, CEO Pichai had told that he takes complete responsibility for the decision. The decision to take a pay cut, it is believed, will give the impression that mass layoffs are not the only cost-cutting measure employed by the leading tech company.
Pichai’s announcement comes days after Apple CEO Tim Cook revealed that he will be taking a 40 per cent pay cut. However, the size of the Indian-born Google CEO’s pay cut is not clear yet.
Last week, JPMorgan Chase also announced that the company is doing away with the ‘special award’ component of the salary given to its CEO Jamie Dimon.
