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  5. Amazon and Google are finding it difficult to lay off employees in Europe: Know-why

Amazon and Google are finding it difficult to lay off employees in Europe: Know-why

Owing to the strict labour laws in France and Germany, Google is speaking with works councils, organisations made up of elected employee representatives that communicate with management about issues affecting the workforce.

Edited By: India TV Tech Desk New Delhi Published on: April 09, 2023 8:00 IST
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Image Source : FREEPIK Amazon and Google are finding it difficult to lay off employees in Europe: Know-why

After announcing the largest layoffs in their history, US big IT firms are suddenly realising the difficulties of cutting their workforce in Europe. Companies in the United States can swiftly lay off hundreds or thousands of employees, whereas labour laws in Europe make it impossible to lay off employees without contacting employee interest groups. As a result, layoffs in the technology sector in Europe have been delayed, leaving many workers confused about their future amid protracted negotiations.

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According to reports, Alphabet Inc. Google’s parent company is in talks to reduce personnel in France through voluntary departures. To entice staff to quit, the corporation is apparently giving severance benefits that it hopes are appealing enough. Similarly, Amazon has attempted to lure senior executives in France to retire by giving up to one year’s compensation and extending leave to the departing staff so that their shares might vest and be paid out as bonuses.

Google is apparently in talks with works councils in France and Germany, whose labour rules are among the harshest in the EU. Works councils are groups of elected employee representatives who negotiate with management about employment issues.

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According to reports, employers are legally compelled to speak with these councils before implementing layoffs, which can be a time-consuming process of data collection, talks, and the option of appealing.

Several of Amazon’s employees in France and Germany are being offered substantial severance payouts. Senior managers with 5-8 years of experience in France were offered up to a year’s pay to resign, whilst the company in Germany is laying off individuals during their probationary periods and giving voluntary departures. 

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Exiting employees in Luxembourg have been awarded a month’s salary per year of service, with additional remuneration dependent on national laws. Furthermore, employees have the option of selecting a two-month timeframe in which to look for work internally.

 

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