Google parent Alphabet to cut 12,000 jobs

Business

January 21, 2023 - Reading time: 3 minutes

The parent firm of Google, Alphabet, will eliminate 12,000 positions, the most recent round of layoffs to affect the tech sector.

In an internal email, Sundar Pichai, the CEO of Google and Alphabet, stated that he accepted “full responsibility” for the downsizing.

Over 6% of Alphabet’s employees worldwide, including those in the engineering and recruitment departments, will be affected by the layoffs.

This comes after Amazon eliminated 18,000 employees and Microsoft cut 10,000 jobs, respectively, in recent weeks.

Staff members “worked so hard” in their positions, Mr. Pichai said, adding that their “contributions have been important.”

Although it won’t be simple, he added, we’ll help staff members as they search for their next opportunity.

“Until then, kindly look after yourselves as you process this upsetting news. As part of that, feel free to work from home today if you have just begun your workday.

Google employs more than 5,500 people in the UK, according to a recent Companies House report. How many of these will be impacted by the cuts is unknown.

For US employees, Mr. Pichai offered severance packages that include at least 16 weeks of pay, their bonus from 2022, paid time off, and six months of health insurance.

Even on our hardest days, he claimed, he was “optimistic about our capacity to complete our mission.”

The changes were well received on Wall Street as Alphabet shares increased by nearly 5% on the day.

According to analysts, the top names in tech had already overspent and did not anticipate a slowdown.

Wedbush Securities’ Daniel Ives claimed that the layoffs show reckless spending in a sector experiencing “hypergrowth.”

“The reality is that tech giants overhired at an unsustainable rate, and now that the macroeconomic environment is getting darker, the tech industry is being forced to make layoffs,” he said.

Without counting those revealed by Alphabet on Friday, approximately 194,000 industry workers have lost their employment in the US since the start of 2022, according to the tech portal Layoffs.fyi.

Due to the rampant inflation and rising 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 legislation to prevent US digital firms from dodging taxes, restricting competition, making unreimbursed profits from news material, and acting as venues for hate speech and disinformation. US tech giants are also under examination in the EU.

Darren Stephenson

Darren Stephenson writing spans a wide range of topics, from in-depth political analysis to human interest stories. His unique perspective and engaging narrative style have earned him a loyal readership. Darren's commitment to journalistic integrity and his ability to connect with readers make him a standout voice in modern journalism.

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