The development came after Alphabet Inc, the parent of Google, announced mass layoffs of 12,000 employees or six per cent of its workforce, to combat economic hardships
Amid the global economic downturn, Google's chief executive officer, Sundar Pichai, announced a 'pay cut' for the company's senior-level executives.
“All roles above the senior vice president level will witness a 'very significant’ reduction in their annual bonus. For senior roles, the compensation is linked to company performance,” Business Insider quoted Pichai.
Along with other employees, Pichai will accept a pay cut for himself. However, the 50-year-old executive did not reveal the percentage or the amount of the cut.
Addressing the layoffs, Pichai said it was inevitable to avoid much worse situations. He added that he consulted with the founders and other board members before deciding on the job cuts.
The pay cut decision came after Tim Cook, chief executive officer (CEO) of Apple, announced that he would take 40 per cent lower compensation due to pressure from the shareholders. Last week, JPMorgan Chase also declared that they are abolishing the 'special award' category of the salary given to its CEO Jamie Dimon.
The announcements of layoffs and pay cuts suggest that the global tech sector is continuing with the hardships after a difficult last year. According to a Mint report, nearly 1,50,000 employees lost jobs in the global tech space. Big tech players like Meta and Twitter trimmed their employee numbers to keep the businesses on the profitability track.