Alphabet, Google’s parent company, will cut 12,000 jobs, citing ‘economic reality’

Alphabet Inc., parent company of Google. cuts 12,000 jobs worldwide in latest round of tech layoffs.

CEO Sundar Pichai announced the cuts in a memo to Google employees that was later shared online in a company blog post.

“It will mean saying goodbye to some incredibly talented people that we’ve worked hard to hire and loved working with,” Pichai said. “I’m deeply sorry for this. The fact that these changes will impact the lives of Googlers weighs heavily on me, and I take full responsibility for the decisions that got us here.”

The cuts represent more than 6% of the company’s workforce, according to Reuters. It was not immediately clear which teams would be affected, but they are expected to affect workers in the United States and around the world, according to Pichai’s memo.

The tech sector has racked up massive job losses lately amid a slowing global economy. Google’s announcement comes just 48 hours after Microsoft announced plans to cut 10,000 jobs and coincides with Amazon’s previously announced first round of layoffs that will ultimately affect a total of 18,000 workers.

Other tech companies that have announced layoffs in recent months include Facebook parent company Meta, Salesforce, Twitter and Snap. In total, tech industry employers have cut nearly 195,000 jobs over the past year, according to the Wall Street Journal, which cited a website that tracks job cuts.

The job cuts mark the abrupt end of a period of rapid tech hiring that coincided with the economic boom amid the pandemic. But this rapid growth also led to a spike in inflation, a phenomenon that prompted the Federal Reserve to begin aggressively raising interest rates. The higher rates have combined with a myriad of other factors globally, including the war in Ukraine and the Covid-19 lockdowns in China, to put a damper on the global economy.

In his memo announcing the layoffs, Pichai cited the changing “economic reality.”

“Over the past two years, we’ve had periods of dramatic growth,” he said. “To match and fuel that growth, we hired for a different economic reality than we face today.”

While he said the company was “forced through tough economic cycles”, he said he was “confident in the tremendous opportunity that lies ahead of us through the strength of our mission, the value of our products and services and to our early investments”. in AI.”

Pichai said workers in the United States would be paid for the entire notification period, a minimum of 60 days.

Workers would also be offered severance packages starting at 16 weeks of pay, plus two weeks for each additional year at Google, with 2022 bonuses and remaining vacation also expected to be paid, he said. He added that workers would also be offered six months of health care, job placement services and immigration assistance if needed.

“Outside the United States, we will support employees in accordance with local practices,” he said.

Pichai said a town hall for workers was being held on Monday. “Until then, please take good care of yourself as you absorb this difficult news,” he wrote.

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