 "Google gives employee a 300% pay hike to stop him from joining rival AI company")
In a recent episode of the Big Technology Podcast, Aravind Srinivas, CEO of Perplexity AI, shed some light on the extreme measures that some major tech companies are taking to stop employees from joining other tech companies. He gave the example of Google, who are indulging in some bizarre behaviour to retain their workforce.
Srinivas shared a striking anecdote wherein Google proposed a staggering 300% salary hike to dissuade an employee from considering a position at Perplexity AI.
The individual in question belonged to Google’s search team and was not directly affiliated with its AI division. Nevertheless, Google deemed it imperative to substantially augment the employee’s compensation package to prevent their departure.
Srinivas, an alumnus of IIT-Madras, expressed astonishment at Google’s willingness to escalate the offer to such an extent.
In addition to addressing retention strategies, Srinivas delved into the prevalent issue of layoffs within the tech sector. He underscored the ambiguity surrounding the criteria employed by companies in selecting employees for dismissal.
According to his insights, there appears to be a trend towards targeting high-salaried individuals whose contributions may not commensurately align with productivity.
Notably, Srinivas highlighted a shift within companies like Google towards closely scrutinizing output relative to compensation, particularly emphasizing the potential impact of prolonged vacations on operational efficiency.
Impact Shorts
More ShortsGoogle’s recent announcement of layoffs in January further underscores this trend. Approximately 1,000 employees across various sectors, including hardware, central engineering, and Google Assistant teams, found themselves impacted by the latest wave of job cuts.
However, Google is providing affected individuals with the opportunity to apply for alternative positions within the company. Those unable to secure alternative roles by April will be required to exit the company.
This recent round of layoffs follows a similar move by Google in January of the previous year, where a significant workforce reduction of 12,000 employees was enacted.
The tech industry as a whole is witnessing a surge in layoff activities in 2024, marking a period of significant restructuring and realignment within major corporations.
(With inputs from agencies)
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