US tech giants, Google and Amazon, are finding it challenging to carry out staff reductions in Europe, after announcing the largest rounds of layoffs in their history. While it is possible to make widespread job cuts in the US, thanks to fewer labor protections, mass layoffs have stalled in Europe because of strict labor laws that make it almost impossible to dismiss people in some countries without prior consultations with employee interest groups. Google is currently negotiating voluntary departures with workers in France, while Amazon is offering up to a year's pay for some senior managers to resign. In both France and Germany, Google is in negotiations with works councils, and by law, companies are required to bargain with these councils before implementing layoffs, which can result in lengthy negotiations and information gathering, as well as the possibility of recourse. As a result, Google branches in Germany and France will likely be among the last locations to be affected by the cuts, if at all.
Google has acknowledged that negotiations are ongoing regarding employee layoffs in several European countries, but has stated that it does not plan to implement layoffs in Romania, Greece or Austria. Due to labor protections in France and Germany, where negotiations with works councils are required before implementing layoffs, Google's cuts are expected to have a delayed impact in these countries. In Paris, discussions are ongoing with the works council over a voluntary collective departure plan, while in the UK, a 6% redundancy rate is expected to result in 500 job losses. In Dublin and Zurich, unions claim that Google is planning to lay off 240 and 200 employees respectively. Google says it is adhering to local legal requirements, which vary per location and are complex.
US big tech companies have faced difficulties in reducing headcount in Europe due to strict labour protections. In some countries, companies cannot dismiss employees without prior consultations with employee interest groups, resulting in negotiations that can drag on indefinitely. Google parent Alphabet and Amazon have tried to reduce headcount in France by offering generous severance packages to employees, with Google also in negotiations with works councils in Germany and France. Meanwhile, in the UK, an estimated 500 out of 8,000 Google employees will be made redundant. To expedite negotiations, unions have established a cross-country Google works council for EU countries.