The parent company of google announced a 6 percent reduction in staff in its biggest round of job cuts, prolonging a recession among tech firms following record pandemic recruitment.
Alphabet Inc. stated that the job cuts would affect approximately 12,000 jobs all over various units and areas, though some areas, such as recruiting and projects beyond the firm’s core businesses, will have a greater impact.
According to individuals with knowledge of the situation, the job cuts attained the vice president level and impacted divisions such as cloud computing as well as Area 120, a company’s internal incubator that had previously faced cuts last year.
As per the report by Layoffs.fyi, which monitors media reports and company updates, the Google layoffs make January probably the worst month yet in a flood of technical layoffs that started last year. Microsoft Corp. announced this week that it would lay off 10,000 employees, the most in over eight years.
Wayfair Inc., a leading online furniture retailer, announced the layoff of about 10 percent of its working population, and Unity Software Inc., a provider of tools for developing videogames as well as other applications, also reduced its workforce.
Amazon.com Inc. announced layoffs of over 18,000 employees this past month, and Salesforce Inc. announced layoffs of 10 percent of its workforce. Meta Platforms Inc. announced a 13 percent staff reduction last year.
During the global epidemic, tech firms such as Google grew greatly as online life gained in popularity. Recent cuts are part of a broader shift toward profit protection and the end of a growth-at-all-costs period in tech.
Officials have recently stated that the company will be strengthening its belt, signaling the start of a new era of much more structured and cost-effective spending. However, the firm had not revealed as big cuts as its Silicon Valley peers.
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Google recruited vigorously as consumption for its services increased during the epidemic, resulting in a more than 50 percent increase in total Alphabet employee strength since the end of the year 2019.
The layoffs announced this week seemed to fall short of the nearly 12,800 employees Alphabet hired in the third quarter of last year.
“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 Chief Executive Sundar Pichai wrote in a message to employees sent out Friday and posted on the company’s website.
“I take full responsibility for the decisions that led us here,” Mr. Pichai wrote.
Source: wsj.com
Overhiring has emerged as a repeating message at technology firms in recent months, as executives realized that some of the hirings they did early in the disease outbreak to keep up with increasing demands for all things digital left them overstaffed as the business climate got ruined.
Salesforce Co-CEO Marc Benioff, Twitter Inc. co-founder Jack Dorsey and Meta Platforms CEO Mark Zuckerberg are among the officials who have apologised.
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