CORRECTED – Google to delay staff bonus

(CNBC has corrected its story and removed the reference to bonuses that are tied to quarterly expenses in paragraph 5.

Jan 19, 2017 (Reuters) – Alphabet Inc’s Google has deferred a portion of its employees’ year-end bonus payments as part of a transition into a new management system.

A spokesperson for the company told Reuters that they will pay 80% of the advance bonus to employees who are eligible, and the rest in the later months. The move was also communicated to employees last year.

This development is due to tech companies’ efforts to limit spending amid a wider slowdown in demand, and worsening economic conditions.

Alphabet has announced cuts to its health sciences division of over 200 employees, while its megacap peers Amazon.com Inc. Meta Platforms Inc. and Microsoft Corp have laid off thousands.

According to CNBC which first reported the story, the advance bonus will be paid in January, and the remaining 20% in either March or April. According to the report, all bonuses from next year will be paid by March.

Google paid out full bonuses the first month of each year. (Reporting from Yuvraj Malik, Bengaluru; Editing: Maju Samuel and Uttaresh.V