Google, Amazon layoffs: Companies offer 1-year salary to encourage employees to resign voluntarily

Big tech companies have laid off thousands of employees this year but it seems like that was not enough. While Google and Amazon have already fired several employees in some regions, both companies are struggling to let people go in European countries, reported Bloomberg.

Amazon, Google struggle to lay off employees

Google and Amazon are finding it difficult to fire people in this region because of the strict labour protection laws in these countries. In some European countries, these tech companies cannot just let people go without discussing the matter with “employee interest groups”.  Hence, these discussions can delay the layoffs indefinitely.

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As per the law, “companies are legally required to consult with these councils before executing layoffs, which involves a potentially time-consuming process of data collection, discussions, and the option of appealing.” In France and Germany, Google is seeking help from these groups to resolve the layoffs soon.

As per the report, in France, Google’s parent company Alphabet has asked employees to resign voluntarily and get good severance packages in return.

The report further reveals that Amazon is offering a severance package of one-year pay to some senior managers with 5-8 years of experience if they resign voluntarily. The company will also offer “leave to departing employees so their shares can vest and be paid out as bonuses”.

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In Germany, Amazon is firing employees who are on their probationary periods and offering them an option to resign voluntarily.

The report cited a Google spokesperson saying, “We have been working carefully and individually through each country where reductions are taking place to fully adhere to local legal requirements, which vary per location, are complex, and take time.”

Notably, Google is planning to make 500 job cuts in the UK out of its 8,000 employees. These employees will be offered confidential severance packages. The tech giant is working with the council to narrow down the number and type of employees that will be included in a voluntary departure plan. It is reported that the tech giant is not ready to negotiate the number of departures. It is open to negotiating pay packages for such employees. In Dublin and Zurich, Google is planning to fire over 200 of its employees.

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