Google’s parent Alphabet Inc (GOOGL.O) is cutting about 12,000 jobs as it faces “a different economic reality”, it said in a staff memo, doubling down on artificial intelligence (AI) and axing staff who support experimental projects.
The job cuts affect 6% of its workforce, and follows thousands of layoffs at tech giants including Amazon.com Inc (AMZN.O), Microsoft Corp (MSFT.O) and Meta Platforms Inc (META.O) who are downsizing after a pandemic-led hiring spree left them flabby in a weak economy.
Mr Pichai thanked staff for “working so hard” in their roles, adding that their “contributions have been invaluable”. He wrote: “While this transition won’t be easy, we’re going to support employees as they look for their next opportunity. “Until then, please take good care of yourselves as you absorb this difficult news. As part of that, if you are just starting your work day, please feel free to work from home today.”
According to a recent filing with Companies House, Google has more than 5,500 staff in the UK. But it is unclear how many of these will be affected by the cuts.
Mr 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. He said he remained “optimistic about our ability to deliver on our mission, even on our toughest days”.
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 over-hired 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.
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.
Disclaimer: Important Disclosures and Disclaimers. This report is intended for informative purposes only. Under no circumstances is it to be used or considered as an offer to sell or a solicitation of any offer to buy any security. It is recommended that investors independently evaluate the strategies and consult a financial adviser before proceeding to the purchase or sale of any security or other financial instrument. Also note that past performance may not be a reliable indicator of future returns. Investors may not get back the original amount invested. This report has been compiled based on information that I believe is reliable, but the accuracy, completeness, or correctness cannot be guaranteed. The opinions contained within the report are based upon publicly available information at the time of publication and are subject to change without notice.
The use of forward looking wording such as “expect”, “estimate”, “forecast”, involve known and unknown risks and uncertainties which may mean that the actual results may differ from any future results implied by the forward looking wording included in the relevant statement
There is a high level of risk involved with trading leveraged products such as CFDs. You should not risk more than you can afford to lose, it is possible that you may lose all your initial investment. You should not trade unless you fully understand the true extent of your exposure to the risk of loss. If the risks involved seem unclear to you, please seek independent advice. For further details please refer to Financial Instruments Description and Associated Risks. The information contained in the website has been prepared by Emporium Capital K.A Limited, a Cypriot Investment Firm, operating under license number CIF358/18 issued by the Cyprus Securities and Exchange Commission, and, except otherwise specified herein, is communicated by Emporium Capital K.A Limited. Although this website is accessible worldwide, the publications are only intended for use by recipients located in countries where such use does not constitute a violation of applicable legislation or regulations. The products and services referred to in the publications are not intended for recipients residing in countries where the provision of such products and services would constitute a violation of applicable legislation or regulations. It is the sole responsibility of any recipient employing or requesting a product or service to comply with all applicable legislation or regulations. >> view more