Google CEO Sundar Pichai announced on Thursday that senior executives at the company will take pay cuts this year as the company looks to cut costs amid the economic crisis.
The pay cuts will affect all executives making more than $200,000 in total compensation. Executives in the company’s highest compensation bracket, making more than $1 million, will see their pay cut by 10%. The pay cuts will be effective from April until the end of the year.
In a memo to employees, Pichai said the company had to act responsibly to protect its long-term interests. He also noted that Google had already taken steps to reduce its costs and delay discretionary spending.
The pay cuts come as the company faces the economic fallout from the coronavirus pandemic. Google has already laid off thousands of workers, and the pay cuts are likely to affect even more employees.
Google is not the only tech giant to implement pay cuts. Amazon and Apple have also announced pay cuts for their executives.