[Global] Google parent Alphabet cuts 6% of workforce

[Global] Google parent Alphabet cuts 6% of workforce
25 Jan 2023

The parent holding company of Google - Alphabet - has announced that it is cutting around 6 per cent of its global workforce, TechCrunch reports.

Google and Alphabet CEO Sundar Pichai shared the news in an open letter, its content had a similar message to that of other companies that have downsized in recent months. Mr Pichai said that the company had “hired for a different economic reality” than what it’s up against today.

He said Alphabet had bolstered its workforce during the pandemic-driven digital boom times but is now having to reverse course as the world curtails its spending in the face of economic headwinds.

“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,” Mr Pichai wrote, adding that the layoffs will impact units across Alphabet - not solely Google - and that all regions and product areas will be affected.

Big layoffs in big tech

Alphabet’s announcement means that four out of the five so-called “big tech” firms have now announced significant redundancies in the past few months. Apple is now the only one of the big-five U.S. tech giants not yet to announce layoffs.

Earlier this month, Microsoft announced 10,000 job cuts, affecting nearly 5 per cent of its workforce. This followed Amazon’s move to cut 18,000 jobs; 1.2 per cent of its global headcount. And Facebook’s parent Meta revealed 11,000 layoffs in November 2022, affecting 13 per cent of its workforce.

Other tech giants to announce significant layoffs in recent times reportedly include enterprise software giant Salesforce, which confirmed that it was cutting 10 per cent of its workforce at the end of last year, impacting more than 7,000 employees.

This is not the first time Alphabet has downsized. Its robot software offshoot Intrinsic announced the layoff of 40 workers last week, equating to 20 per cent of its headcount and Alphabet’s life sciences subsidiary Verily scaled back by 15 per cent; around 240 people.

However, the January 20 announcement shows job losses at a much larger scale, It will see roughly 12,000 roles worldwide at the company disappear.

Alphabet reportedly said its severance package for US employees will “start at” 16 weeks’ salary, plus an additional two weeks for every year worked, while they will be paid in full for the entire notification period, which is a minimum of 60 days. It committed to paying all outstanding 2022 bonuses and unused vacation time, with six months’ healthcare and additional support services available.

For overseas employees, Mr Pichai simply said that the company would “support employees in line with local practices.”

Mr Pichai tried to put a positive spin on events, saying that good things can emerge from difficult times.

“As an almost 25-year-old company, we’re bound to go through difficult economic cycles,” he wrote. “These are important moments to sharpen our focus, re-engineer our cost base, and direct our talent and capital to our highest priorities.”

Source: TechCrunch

(Links and quotes via original reporting)

The parent holding company of Google - Alphabet - has announced that it is cutting around 6 per cent of its global workforce, TechCrunch reports.

Google and Alphabet CEO Sundar Pichai shared the news in an open letter, its content had a similar message to that of other companies that have downsized in recent months. Mr Pichai said that the company had “hired for a different economic reality” than what it’s up against today.

He said Alphabet had bolstered its workforce during the pandemic-driven digital boom times but is now having to reverse course as the world curtails its spending in the face of economic headwinds.

“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,” Mr Pichai wrote, adding that the layoffs will impact units across Alphabet - not solely Google - and that all regions and product areas will be affected.

Big layoffs in big tech

Alphabet’s announcement means that four out of the five so-called “big tech” firms have now announced significant redundancies in the past few months. Apple is now the only one of the big-five U.S. tech giants not yet to announce layoffs.

Earlier this month, Microsoft announced 10,000 job cuts, affecting nearly 5 per cent of its workforce. This followed Amazon’s move to cut 18,000 jobs; 1.2 per cent of its global headcount. And Facebook’s parent Meta revealed 11,000 layoffs in November 2022, affecting 13 per cent of its workforce.

Other tech giants to announce significant layoffs in recent times reportedly include enterprise software giant Salesforce, which confirmed that it was cutting 10 per cent of its workforce at the end of last year, impacting more than 7,000 employees.

This is not the first time Alphabet has downsized. Its robot software offshoot Intrinsic announced the layoff of 40 workers last week, equating to 20 per cent of its headcount and Alphabet’s life sciences subsidiary Verily scaled back by 15 per cent; around 240 people.

However, the January 20 announcement shows job losses at a much larger scale, It will see roughly 12,000 roles worldwide at the company disappear.

Alphabet reportedly said its severance package for US employees will “start at” 16 weeks’ salary, plus an additional two weeks for every year worked, while they will be paid in full for the entire notification period, which is a minimum of 60 days. It committed to paying all outstanding 2022 bonuses and unused vacation time, with six months’ healthcare and additional support services available.

For overseas employees, Mr Pichai simply said that the company would “support employees in line with local practices.”

Mr Pichai tried to put a positive spin on events, saying that good things can emerge from difficult times.

“As an almost 25-year-old company, we’re bound to go through difficult economic cycles,” he wrote. “These are important moments to sharpen our focus, re-engineer our cost base, and direct our talent and capital to our highest priorities.”

Source: TechCrunch

(Links and quotes via original reporting)