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Big Tech's new playbook: Trim the fat; pay the stars
- Tech firms like Amazon, Google, and Microsoft are focusing on rewarding top performers and scrutinizing underachievers through revised compensation models.
- Amazon, for instance, revamped its compensation model to offer larger payouts to long-standing top performers, while cutting down compensation for first-time top rank achievers.
- The tech industry is shifting towards leaner, high-performing teams by incentivizing top talent and eliminating underperformers.
- Companies like Google, Microsoft, and Meta are aligning their compensation strategies to encourage high-quality work from top-tier employees.
- While tech giants previously offered lavish perks to attract talent, the focus is now on performance and efficiency to achieve more with fewer employees.
- Google and Microsoft have made changes to reward top contributors and enhance performance management, while Meta aims to cut low-rated staff annually.
- Some tech companies are reducing new hire offers and tightening salary approvals, indicating a shift towards rewarding high performers.
- Job switchers in the tech industry are experiencing lower pay increases, reflecting weakened bargaining power and reduced competition.
- While some experts view the crackdown on underperformance as a trend, others believe it may be cyclical and driven by industry norms.
- Despite mixed reactions, employees at tech firms like Amazon have expressed frustration over changes in compensation structures.
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