Google layoffs: The company plans to set up a new team in Munich, Germany which would act as “cheaper” labour, the report claimed.
Google layoffs: The company plans to set up a new team in Munich, Germany which would act as “cheaper” labour, the report claimed.
Python team was ~10 people I think
10 * 350k of total comp is 3.5 million dollars… guessing the german counterparts probably get 120k of total comp so only 1.2 million dollars, assuming it’s 1:1 staff swap.
Never heard of american software engineers at FAANG getting anything less than superstar sf bay wages, never heard of crazy wages in all of the EU for any kind of worker… but maybe someone can correct me on the german team’s salaries.
People at Google Munich pull north of 150k euros TC, so with taxes, insurance etc will end up costing Google around 200k. Still significant savings.
Wait… You get 350k doing python coding?!
$350k includes the salary but also all of the health insurance benefits, taxes, stock options, office space and perks, compute hardware, software services… the works. An employer will have an averaged overhead factor for their skilled workforce, which can be anywhere between 1.5 and 2.5 typically. A worker with an annual pre-tax salary of $140k could cost Google $350k in overall expenses per year. Labor is expensive.
Also, these people weren’t just making simple Python scripts. Most of them were contributing core functionality into Python itself and managing the internal Python version and the ecosystem of Google software stacks that depend on it.
Just for the sake of comparison, Alphabet had $308 billion in revenue and $74 billion in profit in 2023 if I’m reading the numbers correctly. But they need cheaper labour.