Google announces 12,000 job cuts

Google announces 12,000 job cuts

Alphabet and Google CEO Sundar Pichai announced about 12,000 job cuts globally, as his company became the latest US tech giant to enact large-scale restructuring
Alphabet and Google CEO Sundar Pichai announced about 12,000 job cuts globally, as his company became the latest US tech giant to enact large-scale restructuring. Photo: Sajjad HUSSAIN / AFP
Source: AFP

PAY ATTENTION: Enjoy reading our stories? Join YEN.com.gh's Telegram channel for more!

Google's parent company Alphabet announced about 12,000 job cuts globally on Friday citing a changing "economic reality", becoming the latest US tech giant to enact large-scale restructuring.

The layoffs come a day after Microsoft said it would reduce staff numbers by 10,000 in the coming months, following similar cuts by Facebook owner Meta, Amazon and Twitter as the previously unassailable tech sector battles a major economic downturn.

"Over the past two years we've seen periods of dramatic growth. To match and fuel that growth, we hired for a different economic reality than the one we face today," Alphabet CEO Sundar Pichai said in an email to employees.

"We've undertaken a rigorous review across product areas and functions to ensure that our people and roles are aligned with our highest priorities as a company," Pichai said, adding that the workforce would be reduced by around 12,000 roles.

Read also

Netflix soars to 230 mn subscribers, co-founder steps down

"The roles we're eliminating reflect the outcome of that review."

Alphabet employed nearly 187,000 workers worldwide at the end of September 2022. The cuts represent a little over 6 percent of its total workforce.

PAY ATTENTION: Click “See First” under the “Following” tab to see YEN.com.gh News on your News Feed!

Pichai said American employees have already been notified about the cuts while reductions in other countries will take longer due to local labour laws.

The cuts will be "across departments, functions, levels of responsibility and regions," Pichai added.

"The fact that these changes will impact the lives of Googlers weighs heavily on me, and I take full responsibility for the decisions that led us here."

'Unsustainable'

Pichai announced severance packages for US employees, who will receive at least 16 weeks of salary, their 2022 bonus, paid vacations and six months of health coverage.

Read also

Microsoft to axe 10,000 jobs as tech gloom deepens

He said he remained "optimistic about our ability to deliver on our mission, even on our toughest days."

Wall Street welcomed the cuts: Alphabet shares rose by 3.5 percent in electronic trading before the stock market opened.

Analysts have said tech's big guns had previously overspent, not seeing a slowdown on the horizon.

Daniel Ives of Wedbush Securities said the layoffs highlight irresponsible spending across a sector basking in "hypergrowth".

"The reality is tech stalwarts overhired at a pace that was unsustainable and now darker macro is forcing these layoffs across the tech space," he said.

According to tech site Layoffs.fyi, nearly 194,000 industry employees have lost their jobs in the US since the beginning of 2022, not including those announced by Alphabet on Friday.

Hewlett Packard and cloud computing giant Salesforce also announced major cuts this month as rampant inflation and rising interest rates have slowed growth.

US tech giants have also been facing scrutiny in the European Union, which has started enforcing regulations to stop them avoiding tax, stifling competition, profiting from news content without paying and serving as platforms for disinformation and hate.

New feature: Сheck out news that is picked for YOU ➡️ find “Recommended for you” block on the home page and enjoy!

Source: AFP

Authors:
AFP avatar

AFP AFP text, photo, graphic, audio or video material shall not be published, broadcast, rewritten for broadcast or publication or redistributed directly or indirectly in any medium. AFP news material may not be stored in whole or in part in a computer or otherwise except for personal and non-commercial use. AFP will not be held liable for any delays, inaccuracies, errors or omissions in any AFP news material or in transmission or delivery of all or any part thereof or for any damages whatsoever. As a newswire service, AFP does not obtain releases from subjects, individuals, groups or entities contained in its photographs, videos, graphics or quoted in its texts. Further, no clearance is obtained from the owners of any trademarks or copyrighted materials whose marks and materials are included in AFP material. Therefore you will be solely responsible for obtaining any and all necessary releases from whatever individuals and/or entities necessary for any uses of AFP material.

Online view pixel