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Google‘s parent company is shedding roughly 12,000 people, marking the newest major tech firm to chop staff amid corporate concerns about inflation and global economic downtowns after rapid expansions and record-breaking profits.
CEO Sundar Pichai announced cuts in an email to staff on Friday, which was shared in an organization blog post pointing to a “different economic reality” than one which parent company Alphabet had initially anticipated over a period of “dramatic” growth. The cuts mark the largest-ever inside the company up to now.
The layoffs reflect around 6 per cent of Google’s global workforce and are available on the heels of layoffs at tech giants like Amazon, which cut roughly 18,000 jobs, or about 6 per cent of its workforce, and at Microsoft, which laid off about 10,000 employees, or 5 per cent of its workforce. Meta – the parent company for Facebook and Instagram – also recently laid off 11,000 staff, or about 13 per cent of the corporate’s workforce.
“It will mean saying goodbye to some incredibly talented people we worked hard to rent and have loved working with. I’m deeply sorry for that,” Mr Pichai shared in the corporate memo. “The undeniable fact that these changes will impact the lives of Googlers weighs heavily on me, and I take full responsibility for the choices that led us here.”
The company’s earnings report in October reported $69bn in revenue and $13.9bn in profit, marking growing revenue but shrinking profit margins, down from $18.9bn from the identical quarter within the previous 12 months.
Impacted Google employees might be paid “through the full notification period,” a “minimum 60 days,” with severance packages starting at 16 weeks salary plus two weeks for each additional 12 months at Google, in line with the memo. The corporate also pays 2022 bonuses and pay out remaining vacation time, and offer six months of healthcare, job placement services, and immigration support for eligible employees, the memo said.
The Independent has requested additional comment from Google.
Read Mr Pichai’s full statement below:
I even have some difficult news to share. We’ve decided to cut back our workforce by roughly 12,000 roles. We’ve already sent a separate email to employees within the US who’re affected. In other countries, this process will take longer resulting from local laws and practices.
It will mean saying goodbye to some incredibly talented people we worked hard to rent and have loved working with. I’m deeply sorry for that. The undeniable fact that these changes will impact the lives of Googlers weighs heavily on me, and I take full responsibility for the choices that led us here.
Over the past two years we’ve seen periods of dramatic growth. To match and fuel that growth, we hired for a distinct economic reality than the one we face today.
I’m confident concerning the huge opportunity in front of us because of the strength of our mission, the worth of our services and products, and our early investments in AI. To totally capture it, we’ll have to make tough decisions. So, we’ve undertaken a rigorous review across product areas and functions to be sure that our people and roles are aligned with our highest priorities as an organization. The roles we’re eliminating reflect the consequence of that review. They cut across Alphabet, product areas, functions, levels and regions.
To the Googlers who’re leaving us: Thanks for working so hard to assist people and businesses in every single place. Your contributions have been invaluable and we’re grateful for them.
While this transition won’t be easy, we’re going to support employees as they appear for his or her next opportunity.
Within the US:
- We’ll pay employees through the full notification period (minimum 60 days).
- We’ll also offer a severance package starting at 16 weeks salary plus two weeks for each additional 12 months at Google, and speed up no less than 16 weeks of GSU vesting.
- We’ll pay 2022 bonuses and remaining vacation time.
- We’ll offer 6 months of healthcare, job placement services, and immigration support for those affected.
- Outside the US, we’ll support employees in step with local practices.
As an almost 25-year-old company, we’re certain to undergo difficult economic cycles. These are vital moments to sharpen our focus, reengineer our cost base, and direct our talent and capital to our highest priorities.
Being constrained in some areas allows us to bet big on others. Pivoting the corporate to be AI-first years ago led to groundbreaking advances across our businesses and the entire industry.
Due to those early investments, Google’s products are higher than ever. And we’re on the brink of share some entirely recent experiences for users, developers and businesses, too. We’ve got a considerable opportunity in front of us with AI across our products and are prepared to approach it boldly and responsibly.
All this work is a continuation of the “healthy disregard for the not possible” that’s been core to our culture from the start. Once I go searching Google today, I see that very same spirit and energy driving our efforts. That’s why I remain optimistic about our ability to deliver on our mission, even on our hardest days. Today is actually one among them.
I’m sure you’ve got many questions on how we’ll move forward. We’ll be organizing a town hall on Monday. Check your calendar for details. Until then, please take excellent care of yourselves as you absorb this difficult news. As a part of that, if you happen to are only starting your work day, please be happy to make money working from home today.