With the announcement of the greatest waves of layoffs in their respective histories, leading American technology businesses are now finding how hard it is to decrease personnel in Europe.
Companies in the United States have the ability to lay off hundreds or even thousands of people over a matter of months, and many of them have done so in recent years. In the meanwhile, widespread layoffs at IT businesses in Europe have been put on hold due to labour rules that make it almost hard to fire individuals in certain countries without first consulting with employee interest organisations. This has caused the layoffs to stop.
Because of this, thousands of people who work in the IT industry are in a state of uncertainty since they do not know whether or not they will be impacted by the discussions, which might go on forever.
The parent firm of Google, Alphabet Inc., is reportedly in discussions to cut its workforce in France by encouraging employees to voluntarily leave their positions. It would seem that the company is offering severance benefits that it is hoping are tempting enough in the hopes that this would encourage employees to depart.
In a similar vein, Amazon has made an effort to entice top executives in France to retire by offering to pay them for up to a year after they leave the company and granting them more leave time. This is done so that their shares may vest and they can get incentives.
It would seem that Google is holding discussions with works councils in France and Germany, two countries whose employment regulations are among the strictest in the EU. Works councils are groupings of employee representatives who are chosen by their peers and that engage with management on matters pertaining to employment.
Reports indicate that businesses are required by law to consult with these councils before to carry out layoffs. This consultation may be a time-consuming procedure that involves the collection of data, discussions, and the possibility of appealing the decision.
Amazon is providing a number of its workers in France and Germany with generous severance packages in order to encourage their departure. Although the firm in Germany is laying off employees while they are still in their probationary periods and granting voluntary departures, senior managers in France with 5-8 years of experience were given up to a year’s salary to quit. In Germany, the corporation was also offering voluntary departures.