Google layoffs: The company plans to set up a new team in Munich, Germany which would act as “cheaper” labour, the report claimed.
Cheaper labour in the most expensive town in a country that is well known for high labour costs?
Maybe they will save money because they don’t have to offer healthcare?
Employers in Germany have to bear half of the mandatory social security contributions.
This is on top of gross salary and includes mandatory health insurance.
Sundar Pichai-led company
Is that really a better description than just saying Google?
CEOs. Name them. Shame them.
Out of curiosity, does anybody know how big was the team?
Python team was ~10 people I think
10 * 350k of total comp is 3.5 million dollars… guessing the german counterparts probably get 120k of total comp so only 1.2 million dollars, assuming it’s 1:1 staff swap.
Never heard of american software engineers at FAANG getting anything less than superstar sf bay wages, never heard of crazy wages in all of the EU for any kind of worker… but maybe someone can correct me on the german team’s salaries.
Wait… You get 350k doing python coding?!
$350k includes the salary but also all of the health insurance benefits, taxes, stock options, office space and perks, compute hardware, software services… the works. An employer will have an averaged overhead factor for their skilled workforce, which can be anywhere between 1.5 and 2.5 typically. A worker with an annual pre-tax salary of $140k could cost Google $350k in overall expenses per year. Labor is expensive.
Also, these people weren’t just making simple Python scripts. Most of them were contributing core functionality into Python itself and managing the internal Python version and the ecosystem of Google software stacks that depend on it.
Google’s death spiral will take a while but it’s clearly circle the drain.
It will likely never completely die the same way IBM never died but it will stop being the desired placed for new graduates.
The fundamental problem with these businesses is that they are Too Big To Fail. Which is to say, they’ll have a low-interest line of credit and enormous historic revenue streams that carry them decades past what should be an expiration date.
If a better Search Engine pops up, Google can either buy them out or vexatiously litigate them into the ground. If they start losing ground to Microsoft or Facebook, their treasury can simply hedge the losses by purchasing their rivals’ stock. If they face an outside challenger - a ByteDance or a Pinstorm - they can lobby the Feds to lock out the competition or buffer their weak sales by winning more federal contracts from the PRISM program.
And, in the end, they’ll always have their IP. Decades of accumulated “we developed a special coding technique for pressing a button, so now you owe us money any time you press a button” basic legacy infrastructure that everyone else will be forced to license by a captured judiciary/regulatory body.
Like GE and Walt Disney and Authentic Brands Group, they don’t actually have to make anything in the end. They can reap tens of billions of dollars by collecting rents on the company legacy.
Just zombie firms feasting on the brains of smaller businesses and retail customers forever and ever and ever.
