CEO Sundar Pichai, He said he was “very sorry” for the workers to be laid off and that it was “a difficult decision to prepare the company for the future”. Layoffs will occur globally and across the company.
Alphabet, has experienced a hiring spree over the past few years during a period of “dramatic growth”, but Pichai He said the hiring was done “for an economic reality different from the one we are facing today”. Over the past few weeks, Microsoft, Amazon, Meta and others have launched equally painful and dramatic layoffs due to economic conditions.
Google is the latest to impose layoffs, thanks in part to its strong advertising and cloud computing divisions. However, the company saw a 27% drop in profit last quarter compared to the previous year, and Pichai, Alphabet’in He said he needed to cut spending and hiring. However Bloomberg’e Activists and analysts have called for more aggressive cuts, noting that the company’s headcount has increased by 20% since 2017, according to the report.
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Pichai said employees will be paid for at least a full 60-day notice period. Alphabet plus 16 weeks of salary plus two weeks for each additional year at Google seniority will offer packages. It will also pay for 2022 bonuses and remaining vacation time, while providing 6 months of healthcare, job placement services, and “immigrant support for those affected.”
In the past two weeks alone, Microsoft, Amazon and Meta have laid off 10,000, 18,000 and 11,000 employees respectively. Google, recently cut other spending, shut down Stadia, new generation Pixelbook canceled laptops and more.