12,000 jobs will be lost by Google Parent Alphabet
Google's parent company, Alphabet, will eliminate 12,000 positions. This is the most recent wave of layoffs to affect the technology sector.
Sundar Pichai, the CEO of Google and Alphabet, claimed 'ultimate responsibility' for the redundancies in an internal email.
6% of Alphabet's employees worldwide, including those in departments like engineering and recruitment, would be impacted by the layoffs.
This follows after Microsoft and Amazon both announced job cuts of 10,000 and 18,000, respectively.
According to Mr. Pichai, the staff's 'contributions have been invaluable' and he congratulated them for 'working so hard' at their positions.
He stated, 'This transition won't be simple, but we'll assist staff in locating their next position.'
'Please look after yourselves while you try to comprehend this dreadful news till then. We encourage you to work remotely today if you are only starting your workday as part of that.'
According to a recent disclosure to Companies House, Google employs more than 5,500 people in the UK. But it's unclear how numerous of these positions may disappear as a result of the budget cuts.
According to Mr. Pichai, terminated US workers will get a minimum of 16 weeks of pay, their compensation for 2022, paid time off, and medical insurance for six months.
Even on the hardest days, he maintained his optimism about the team's capacity to complete our task, he stated.
Wall Street supported the reductions. Alphabet stock increased 3.5% in online trading before the market opened.
According to analysts, the top names in technology spent excessive amounts of money in the previous because they failed to anticipate a downturn.
Are job losses in the technology sector a warning sign for the overall economy?
Why are major tech firms laying off employees?
Wedbush Securities' Daniel Ives claimed that the layoffs are evidence of wasted expenditure in a 'hypergrowth' industry.
The truth is that big firms hired far too many workers at a pace that was unsustainable, he claimed. Darker macro is currently causing layoffs in the tech sector.
Nearly 194,000 tech workers in the US have abandoned their employment since the beginning of 2022, according to the technology website Layoffs.fyi. This amount excludes the layoffs that Alphabet announced on Friday.
Hewlett-Packard and Salesforce, a sizable cloud computing giant, both announced significant job losses this month. This occurs as a result of slowing growth caused by high prices and rising interest rates.
The US tech behemoths are being closely watched by the European Union as well. To prevent companies from evading taxes, restricting competition, profiting off of news and information without compensating for it, and serving as venues for hate speech and misleading information, it has begun implementing regulations.