Google’s remarkable 300% salary hike to retain employee amidst workforce reduction challenges

Google Reduces Local Jobs and Moves Some Overseas to Cut Costs

Google Reduces Local Jobs and Moves Some Overseas to Cut Costs

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In a surprising turn of events, Google reportedly offered an extraordinary 300% salary hike to an employee who was contemplating a job switch to Perplexity AI. 

This revelation was shared by Aravind Srinivas, the CEO of Perplexity AI, during a discussion on the Big Technology Podcast, shedding light on the lengths to which major tech companies go to retain their talent. What makes this offer particularly noteworthy is that the employee in question was not directly involved in Google’s AI division but was a part of the broader ‘search team.’

This revelation comes at a time when Google’s CEO, Sundar Pichai, has warned employees about impending job cuts, emphasizing the need for making ‘tough choices’ to create the necessary capacity for future investments. 

Google has already undertaken significant workforce reduction, with over a thousand employees reportedly laid off in various departments since January 10. Pichai had previously announced plans to cut approximately 12,000 jobs, constituting about 6% of the global workforce.

Traditionally, when employees entertain outside job offers, responses from their current employers often involve modest counter offers or respectful parting conversations. 

However, Google’s response in this instance surpassed all expectations, offering a 300% salary hike to the employee, a move that surprised both the employee and industry insiders.

Aravind Srinivas further revealed that the employee, despite the lucrative offer from Perplexity AI, chose to stay with Google. The specifics of the AI startup’s initial offer and Google’s counteroffer remain undisclosed, but the magnitude of the response underscores Google’s unwavering commitment to retaining top-tier talent, even amid recent initiatives to reduce its workforce.

The timing of this counteroffer is particularly intriguing, considering Google’s recent workforce reduction measures. 

This unique approach challenges conventional expectations, highlighting the tech giant’s determination to retain skilled professionals and maintain its competitive edge in the industry.