August 17, 2022

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Google, Facebook CEOs Warn Dodgers, What That Means

Google, Facebook CEOs Warn Dodgers, What That Means

The CEOs of Alphabet and Meta Platforms, the parent companies of Google and Facebook and the top big hitters in the the world of technologywarns underperforming employees not to escalate it, raising concern about potential layoffs amid Economic continued downtown.

The US economy contracted from April through June for the second consecutive quarter, raising concerns about an economic recession. Consecutive quarters of lower GDP constitute one classic, if not definitive, measure of stagnation.

“Anytime there’s a recession or a warning of a recession, companies start looking inward and saying, How do we go about this?” Julie Bock, founder and chief strategist at The Bauke Group, told FOX Business.

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Bauke is one of several industry experts who told FOX Business that these warnings are indicators of a weak labor market — including layoffs.

After a disappointing financial quarter, Meta CEO Mark Zuckerberg And the Alphabet CEO Sundar Pichai Both told employees that they have productivity concerns and that they “take the pressure off” on employee performance management.

Meta Platforms is considering reducing the money it gives news organizations as they re-evaluate the partnerships they’ve built over the past few years. ((AP Photo/Tony Avelar, File)/AP Newsroom)

According to an audio recording obtained by Reuters, Zuckerberg, whose company has suffered its first revenue decline in history, told employees last week that his hope is to raise expectations and meet tougher targets.

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“Just kind of turned the heat up a little bit,” Zuckerberg was quoted as saying. “I think some of you may decide that this place is not for you, and that self-selection is for me.”

Meanwhile, Pichai issued similar concerns. Pichai reportedly told employees last week that there were “real concerns that our productivity as a whole is not where it should be in relation to our headcount.” The comments were first reported by CNBC.

Google revenue growth Over the past quarter, it slowed to the slowest pace in two years as advertisers reined in their spending amid growing fears of an economic recession. Second-quarter revenue is up 13% this year, compared to 62% in the corresponding quarter last year.

google

Google CEO Sundar Pichai speaks during the signing ceremony, as Google commits to helping expand IT education at El Centro College in Dallas, Texas, October 3, 2019. (Reuters/Brandon Wade/Reuters Photo)

These notices are indications of potential layoffs, which could lead to greater unemployment, fewer jobs available, lower wage growth and fewer job opportunities at startups, according to economist and course leader John Lonsky.

The US economy enters a technical recession after growth faltered 0.9% in the second quarter

“If there are a lot of these warnings of underperformance, it is likely that staffing will follow unless there is an unexpected revival of the economy,” Lonsky said, adding that if Warn employees of poor performanceThey should prepare for a possible layoff.

Gross domestic product – the broader measure of the economy – contracted at an annual rate of 0.9% from April through June. The drop, reported by the Commerce Department, came after there was a 1.6% annual drop in gross domestic product from January to March. It’s a far cry from the 5.7% growth the economy achieved last year.

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“There is no denying that payrolls will grow much slower than ever, because the reality of economic growth of less than 1.5% on average through 2023 will take hold,” Lonsky added.

The first thing companies will do is to close any open or vacant positions which will reduce the number of open positions facing the market, according to Bucky. The next thing companies will do is ask leaders to identify the performers who are least willing to lay off.

ribbon protection else they change they change %
dead META PLATFORMS INC. 159.93 +0.83 + 0.52%
The Google ALPHABET INC. 114.86 -1.46 -1.26%

“If all the low performers are given up and they still need to cut production, they generally look at the divisions they can live in without people,” Bock said, adding that would depend on the division.

Not all industries will be affected in the same way because some roles are difficult to fill. You don’t have to worry about people with special skills, like accountants or engineers, doing decently.

“If they get Dismissed – Temporarily releasedIt will be collected in a heartbeat because demand is outstripping supply and will last for a long time, she added.

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However, these warnings will also be a sign for employees to reassess whether they like their workplace — especially if they don’t give it their all, Bock added.

Robin Duda, events strategist and founder of Robynduda.com, agrees. These warnings are also used as a trick, Duda said, “to get rid of those who don’t really want to be there or who can’t stand that pressure and it’s an easier way than having to lay people off.”

The Associated Press contributed to this report.