Alphabet, the parent company of Google, will eliminate 12,000 positions, marking the latest round of layoffs in the technology sector.
In an internal email, Google and Alphabet CEO Sundar Pichai claimed “full responsibility” for the layoffs.
The layoffs will affect 6% of Alphabet’s global employees, including recruitment and engineering departments.
This comes days after Microsoft revealed the loss of 10,000 jobs and weeks after Amazon confirmed the loss of 18,000 positions.
Mr. Pichai thanked employees for “working so hard” in their responsibilities and praised their “important contributions.”
While this change may not be easy, we will assist employees in their search for their next opportunity.
“Until then, please take care of yourselves as you process this challenging news. As a result, if you are just beginning your workday, you are welcome to work from home today.”
According to a recent filing with Companies House, Google has over 5,500 employees in the United Kingdom. However, it is unknown how many of these will be impacted by the budget changes.
‘Unsustainable’
Mr. Pichai offered severance packages for employees in the United States, who would receive at least 16 weeks of salary, their bonus for 2022, paid vacations, and six months of health care.
He stated that he remained “optimistic about our capacity to accomplish our purpose, even on our most difficult days.”
Wall Street applauded the reduction, as Alphabet stock surged by 3.5% in electronic trading before the opening bell.
According to analysts, tech’s heavy hitters previously overspent since they did not anticipate a slowdown.
Daniel Ives of Wedbush Securities stated that the layoffs are evidence of imprudent spending in a “hypergrowth” industry.
“The reality is that big giants overhired at an unsustainable rate, and now gloomy macro is forcing layoffs across the tech industry,” he said.
According to the technology website Layoffs. FYI, approximately 194,000 industry workers have lost their employment in the United States since the start of 2022, excluding the layoffs announced by Alphabet on Friday.
Hewlett-Packard and Salesforce, the industry leader in cloud computing, have also announced significant layoffs this month, as rising inflation and interest rates have hindered growth.
The European Union has begun enforcing legislation to prevent US digital firms from dodging tax, restricting competition, benefitting from news material without paying, and functioning as platforms for hate and disinformation.
