Google has terminated its contract with Appen Ltd, the Australian company responsible for labeling massive amounts of training data for Bard, Google's conversational AI platform. In a statement, Appen said it had received notification from Google “that, as part of a strategic review process, it will be terminating its global inbound services agreement with Appen, which will result in the cessation of all projects with Appen by March 19, 2024.” . Appen had no prior knowledge of Google’s decision to terminate the contract.”
For Appen, the loss of Google as a major customer represents a serious blow, potentially affecting the company's financial stability and future prospects. “The news is unexpected and disappointing, particularly given the progress made in Appen’s transformation and performance in November and December 2023,” the company said
“Our decision to terminate the contract was made as part of our ongoing efforts to evaluate and adjust many of our supplier partnerships at Alphabet to ensure our supplier operations are as efficient as possible,” Google spokesman Courtenay Mencini said in a statement The Verge.
Google and Appen have been embroiled in disputes, particularly over pay disparities. Back in 2019, Google required its contractors to pay their employees $15 an hour. However, according to a report by CNBC, public letters from certain workers revealed that Appen did not meet this requirement.
In January 2023, after extensive organizational efforts, Appen introduced salary increases for freelancers working on projects such as the Bard chatbot and other Google initiatives. The new rates ranged from $14 to $14.50 per hour.
Despite these adjustments, work-related problems remained. In June of that year, Appen faced allegations from the U.S. National Labor Relations Board after he allegedly terminated six freelancers who publicly voiced complaints about working conditions. Subsequently, these workers were rehired, marking a point of contention in the current labor dynamic.
For Appen, the loss of Google as a major customer represents a serious blow, potentially affecting the company's financial stability and future prospects. “The news is unexpected and disappointing, particularly given the progress made in Appen’s transformation and performance in November and December 2023,” the company said
“Our decision to terminate the contract was made as part of our ongoing efforts to evaluate and adjust many of our supplier partnerships at Alphabet to ensure our supplier operations are as efficient as possible,” Google spokesman Courtenay Mencini said in a statement The Verge.
Google and Appen have been embroiled in disputes, particularly over pay disparities. Back in 2019, Google required its contractors to pay their employees $15 an hour. However, according to a report by CNBC, public letters from certain workers revealed that Appen did not meet this requirement.
In January 2023, after extensive organizational efforts, Appen introduced salary increases for freelancers working on projects such as the Bard chatbot and other Google initiatives. The new rates ranged from $14 to $14.50 per hour.
Despite these adjustments, work-related problems remained. In June of that year, Appen faced allegations from the U.S. National Labor Relations Board after he allegedly terminated six freelancers who publicly voiced complaints about working conditions. Subsequently, these workers were rehired, marking a point of contention in the current labor dynamic.
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