Google has announced a pay cut for all sales, customer engineers and specialists across all regions. Depending on your level this is anything from a 4% to 20% or more. They are also cutting stock allocation.
These changes are in exchange for a higher potential bonus - with most sales moving from 50/50 to 40/60 and CEs moving from a 20-30% bonus to a 70/30 split. Each $ increased in bonus = $0.5 reduction in base.
The changes are mandatory in most areas.
Google Cloud has tried to sell us their goods multiple times in the past year. Fail. You have a bunch of entitled jerks that feel working at Google makes them geniuses. Google cloud has no understand8 g of enterprise markets. Your sales folks are lazy I’ve seen them blow up money on expensive lunches no follow through. Fat cats good job TK stop incentivizing lazy and entitled people.
Google Cloud Layoff - is it first layoff after Kurien take off ?? I never heard of lay-off in google
Sales should be given $0 base and work on pure commissions with a 30% of the margin as salary/bonus as incentive to get Mortimer to get up and SELL
This is probably an improvement on the previous system... top accounts allocated through the good ole boy network based on who is pals with the manager.
Clearly Google Cloud doesn't value salespeople, and it has shown this time and again by using sales as a catch-all for anything that didn't fit conveniently in algorithm or outsourced function, leading to overworked salespeople who spend their time on paperwork and a completely disfunctional sales organization that can't get the most basic tasks done. Combine that with chronic understaffing and poor sales leadership and you get the disaster we see today.
This is all TK's doing. While at Oracle he was very outspoken about how it was the sales organization's fault that product wasn't selling. From the moment he walked into Google, he carried this belief with him and thought that the reason why Google Cloud wasn't growing faster was because of sales. They were simply too comfortable as they could fall back on their base salaries and Google stock allocations and THAT is the reason why Google wasn't overtaking AWS or Azure. Months ago, he cancelled the announcement of what quotas were going to be in the second half of the year and started planning how he wanted to "incent" the field.
Interestingly, he also revised the hiring process to make it easier to get people in the door. Then his Oracle cronies started showing up. Then it was announced that the best accounts would likely be given to yet-to-be-hired staff with specific experienced that parallels the Oracle, Microsoft, SAP and IBM models and that these positions would be paid at higher, newly created pay grades. Existing employees were told that they ikely didn't have the skills needed to continue to handle these accounts, but they could try to interview for the position and that if they were successful they might not get the promotion or raise. Everyone else is expected to invest time in interviewing and then training the newly hired on these top accounts.
Is it coincidence the global head of sales operations and the VP of sales in the Americas left before this announcement was made? I think not. Will others leave over TK's treatment of the sales organization? Absolutely. The question is just when and how many.
Cutting base salaries and RSUs over performance bonuses. Will staff leave?