The Blubber

Per Gulf News

Google and Amazon, along with other US big tech companies that announced that they would be laying off employees, are experiencing difficulty in Europe due to their strict local labor laws. The companies are trying to implement voluntary departures to reduce headcount.

For example, in France, Alphabet, the parent company of Google, was reportedly calling for voluntary departures with generous severance packages to help incentivize workers to give up their position at the company.

Amazon, on the other hand, was offering up to a year's pay on top of vested shares and bonuses to help get some senior managers to leave the company. A Google spokesperson responded to Bloomberg regarding how they deal with the matter.

"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,"

France and Germany are known for having some of the strongest labor laws in the EU. For both countries, companies would have to negotiate with work councils regarding layoffs.

This process, compared to the US, is usually longer due to additional requirements, including info gathering, negotiations, and recourse possibilities. Alphabet Workers Union executive chair Parul Koul gave a statement regarding how it was "inspiring."

Koul: "It is inspiring for people in the US to see things are different in other places... it's a blueprint for what people can fight for,"

Despite massive layoffs within the big tech sector, labor shortages in certain sectors within the US are resulting in companies struggling to attract and retain workers. This was especially true for small businesses and the service industry.

In 2022, there was an increase in the number of employees checking out, with employee engagement decreasing by 2% from 2021. This was true for remote, hybrid, or onsite employees.

See flow at unusualwhales.com/flow.

Other News:

• Labor shortages affect US companies trying to attract and retain workers
• Employees are checked out at work more than ever, and it doesn't matter it they're remote, hybrid, or onsite, Gallup study has found

Resources:

Bloomberg