Google coins the term Golden 12K for the severance paid to 12,000 laid-off employees

Google joined the list of major tech giants like Microsoft, Facebook and Amazon to lay off last week. Its parent company Alphabet Inc has decided to lay off a total of 12,000 employees. Google has now coined the term “Golden 12K” for the severance pay paid to Google employees who were laid off. According to a letter shared by Google CEO Sundar Pichai, these are the benefits for the employees affected by the layoffs:

Google will pay terminated employees during a notice period (minimum of 60 days). Fired employees will receive 16 weeks of severance and an additional two weeks of pay for each year they worked for the company. The company will also give bonus and remaining vacation time for the year 2022. Google will also undertake to provide six months of healthcare, job placement services and immigration assistance to affected employees.

According to reports, all these benefits have been announced only for the employees living in the US. Employees who are working from outside will get support as per local practices.

In addition to these layoffs, Google has also subjected its senior executives to pay cuts as part of the company’s cost-cutting measures. as quoted by Business Pichai, the insider, said, “All roles above the Senior Vice President level will see a very significant reduction in their annual bonuses. For senior roles, compensation is linked to company performance.” It is not clear how Pichai’s salary will be cut. He is yet to answer this question when asked by the media.

The question remains that why Google, one of the major tech giants, took this drastic step. Google’s parent company Alphabet Inc is grappling with risks of slowing growth and recession as the tech market adjusts to a post-pandemic market, according to a report by CNBC TV18.

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