Tech job cuts: Google’s Alphabet will eliminate 12,000 positions globally
Layoffs at Google’s Alphabet in 2023:
The employment reductions will impact every position in the organization and worldwide. Sundar Pichai, the CEO, said he accepts “full responsibility for the decisions that brought us here” in an email to staff members today.
On January 20, Google parent Alphabet stated it aims to lose about 12,000 positions, or 6 percent of its workforce worldwide, as tech layoffs spread among businesses. CEO Sundar Pichai informed staff via email.
Pichai added that he takes “full responsibility for the mistakes that brought us here,” adding that the cuts will affect employees “globally and across the entire company.”
Pichai continued, “These are crucial times to narrow our focus, re-engineer our cost structure, and allocate our talent and capital to our highest priorities.
The job losses impact teams across the organization, including recruiting, corporate operations, engineering, and product teams.
According to Google, the layoffs are global and instantly affect US employees.
With the layoffs, Google joins a plethora of other tech titans that have significantly reduced operations in the face of a failing global economy and surging inflation. Twitter, Amazon.com, Microsoft, Meta Platforms, and Twitter have all reduced staff.
Pichai stated that the tech giant will “help employees as they look for their next opportunity” in the announcement.
Pichai said the company would pay workers for the entire notice period in the US (minimum 60 days).
Additionally, Google will accelerate the vesting of at least 16 weeks of GSUs and provide a severance payout of 16 weeks of salary plus two extra weeks for each consecutive year of employment.
For individuals impacted, the company will pay incentives for 2022 and any unused vacation time and provide 6 months of healthcare, job placement assistance, and immigration support.
Additionally, outside of the US, the search engine behemoth will support staff following regional customs.
As part of the transition to a new performance management system, Google is delaying a chunk of its employees’ year-end incentives, according to a recent Reuters article.
According to a corporate spokeswoman who talked to Reuters, the company will initially pay qualified employees an advance bonus of 80%, and the remaining amount will follow in later months. The move was announced to the personnel last year.
The company, however, posted earnings and revenue in October that fell short of analyst estimates. Compared to the prior year, profit dropped by 27% to $13.9 billion.
At that time, Pichai promised that Google would cut costs, and Ruth Porat, the chief financial officer, predicted that the number of new positions would decrease by more than half from the third quarter to the fourth.
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