Alphabet Inc’s Google said it would be deferring a portion of its year-end bonuses to employees as part of a transition to a new performance management system.
Google will pay 80 percent advance bonus to employees initially and the remainder in later months, a spokesperson told Reuters. Google communicated the move to staff last year.
The development comes amid tech companies’ attempts to limit spending amid a broader slowdown in demand and deteriorating economic conditions.
Alphabet has so far announced cuts impacting over 200 employees in its health sciences division even as its peers Amazon.com, Meta Platforms and Microsoft have terminated jobs to thousands of employees.
Google will pay the advance bonus in January and the remaining 20 percent in March or April, helping Google spread out costs to the next quarter, according to a CNBC. All bonuses next year onwards will be paid in March, the report added.