Google, the web search and video sharing giant, has announced that it will lay off 12,000 people from its workforce. This news comes amid a slew of major U.S. tech companies cutting jobs due to fears of an oncoming recession.
In an email sent to the company’s staff on Friday, Sundar Pichai, Google’s CEO, announced that the firm will begin making layoffs in the U.S. immediately. He added that the process in other countries will take longer due to local laws and practices.
To support the affected employees, Google will offer U.S.-based employees 16 weeks of severance pay, plus two weeks for each additional year they’ve worked at the company. This is an effort to provide financial assistance during the transition period.
Tech companies are currently facing a variety of challenges, including rising interest rates and inflation over the past year. These factors have negatively impacted technology shares and forced advertisers to cut back on online ad spending.
In particular, hikes to interest rates from the U.S. Federal Reserve have led to a decrease in appetite for American tech shares. The gloomy macroeconomic climate has further piled pressure on these companies to make deep cuts to their workforces.
Other major tech companies, such as Amazon, Microsoft, and Twitter, have also announced job cuts in recent times. Amazon began a fresh wave of job cuts affecting over 18,000 people on Wednesday, while Microsoft announced plans to lay off 10,000 workers the same day. Twitter, under the leadership of Elon Musk, has also made redundancies, cutting over half of the company’s headcount since he took over as CEO late last year.
Read the full memo Sundar Pichai sent out to Google Staff on Friday:
I have some difficult news to share. We’ve decided to reduce our workforce by approximately 12,000 roles. We’ve already sent a separate email to employees in the US who are affected. In other countries, this process will take longer due to local laws and practices.
This will mean saying goodbye to some incredibly talented people we worked hard to hire and have loved working with. I’m deeply sorry for that. The fact that these changes will impact the lives of Googlers weighs heavily on me, and I take full responsibility for the decisions that led us here.
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.
I am confident about the huge opportunity in front of us thanks to the strength of our mission, the value of our products and services, and our early investments in AI. To fully capture it, we’ll need to make tough choices. So, 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. The roles we’re eliminating reflect the outcome of that review. They cut across Alphabet, product areas, functions, levels and regions.
To the Googlers who are leaving us: Thank you for working so hard to help people and businesses everywhere. Your contributions have been invaluable and we are grateful for them.
While this transition won’t be easy, we’re going to support employees as they look for their next opportunity.
As an almost 25-year-old company, we’re bound to go through difficult economic cycles. These are important moments to sharpen our focus, reengineer our cost base, and direct our talent and capital to our highest priorities.
Being constrained in some areas allows us to bet big on others. Pivoting the company to be AI-first years ago led to groundbreaking advances across our businesses and the whole industry.
Thanks to those early investments, Google’s products are better than ever. And we’re getting ready to share some entirely new experiences for users, developers and businesses, too. We have a substantial opportunity in front of us with AI across our products and are prepared to approach it boldly and responsibly.
All this work is a continuation of the “healthy disregard for the impossible” that’s been core to our culture from the beginning. When I look around Google today, I see that same spirit and energy driving our efforts. That’s why I remain optimistic about our ability to deliver on our mission, even on our toughest days. Today is certainly one of them.
I’m sure you have many questions about how we’ll move forward. We’ll be organizing a town hall on Monday. Check your calendar for details. 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.