The parent firm of Google, Alphabet, will eliminate 12,000 employees, the most recent round of layoffs to affect the tech sector.
In an email thread, Sundar Pichai, the CEO of Google and Alphabet, stated that he accepted “complete responsibility” for the downsizing.
Six per cent of Alphabet’s employees worldwide, including those in the technical and recruitment departments, will be affected by the layoffs.
This comes after Amazon eliminated 18,000 employees and Microsoft cut hundreds of jobs, respectively, in recent weeks.
Staff members’ “accomplishments have been essential,” Mr. Pichai said, thanking them for “working really hard” in their positions.
“While this change won’t be simple, we’ll help staff as they hunt for their next opportunities,” he added.
As you process this upsetting news in the interim, please take good care of yourself. You are welcome to work from home today if you are just beginning your workday as part of that.
Google employs more than 5,500 people in the UK, according to its latest filing with Companies House. However, it’s unclear how many of them the budget cuts would affect.
Mr. Pichai provided retention bonuses for US staff members that included at least 16 weeks of pay, their bonus from 2022, paid time off, and half-year health insurance.
He claimed that even on our hardest days, he was “hopeful about our capacity to complete our mission.”
The changes were well received on Wall Street, as Alphabet shares increased by 3.5% in electronic markets before the market opened.
Analysts claim that the leading tech companies had already spent too much money and did not foresee a slowdown.
Daniel Ives of Wedbush Securities said that the layoffs demonstrate careless spending in a market that is “hyper-growing.”
Without including those disclosed by Alphabet on Friday, the tech portal Layoffs.fyi, estimates that since the year 2022 began, 194,000 manufacturing workers have been laid off in the US.
Due to the rampant inflation and increasing interest rates, which have hindered growth, Hewlett-Packard and cloud computing, behemoth Salesforce also made significant cuts this month.
The European Union has begun enforcing regulations to prevent US tech giants from dodging taxes, reducing competition, making unreimbursed profits from news reporting, and acting as platforms for hate speech and deliberate misinformation. US tech giants are also under scrutiny in the EU.