They could not accurately judge productivity, talent or motivation, so some groups would lose their key players. This would demotivate everyone left. They would launch 500-1000 startups with knowledge of how some market of merely a hundred million people is being underserved. A dozen or a hundred of those would become true competitors in those markets.
It would be good for everyone except those who lost health insurance and income at the wrong time, and the Goog itself.