Google parent announces 12,000 job cuts worldwide
Alphabet, the parent company of search engine Google, will cut 12,000 jobs, the group said on Friday, marking the latest announcement in a long string of layoffs in the industry American technology company.
After Amazon, Meta and Microsoft, it's the turn of Alphabet, the parent company of Google, to announce a social plan for large-scale with the loss of approximately 12,000 positions worldwide, or 6% of its total workforce.
“Over the past two years, we've experienced dramatic periods of growth,” Alphabet CEO Sundar Pichai said in an email to group employees.
For accompany and fuel this growth, we hired in a different economic context from the one we know today, he added, specifying that the economic situation forced the company to reduce the workforce.
Alphabet had nearly 187,000 employees worldwide at the end of September 2022.
The job cuts will be across departments, functions, levels of responsibility and regions, said Mr. Pichai without giving further details.
American employees affected by this restructuring have already been notified.
In other countries, the procedure will take longer depending on local labor law.
In the United States, laid-off employees will receive at least 16 weeks of salary, their 2022 bonuses, paid vacation and six months of health coverage.
Foreign employees in the United States will also be able to benefit from assistance in their legal procedures if they wish to remain on American soil.
Wall Street welcomed the news of the job cuts: Alphabet stock rose 3.5% in pre-opening electronic trading. New York.
US computer giant Microsoft on Wednesday announced the layoff of around 10,000 employees by the end of March.
Over the past few weeks, Meta (Facebook, Instagram), Amazon and Salesforce have also decided to lay off several thousand employees.
Online furniture retailer Wayfair also announced on Friday that it would lay off around 1,750 workers, or 10% of its workforce, according to Reuters.
The tech sector is going through a tough times amid high inflation and rising interest rates after a good time, especially at the height of the COVID-19 pandemic and lockdowns.
According to the specialized site Layoffs.fyi, nearly 194,000 employees in the sector have lost their jobs in the United States since the beginning of 2022, not counting Thursday's announcement from Alphabet.
Tech stalwarts have been hiring at a rate that was unsustainable and the deteriorating macro environment is now forcing them to lay off, commented Dan Ives of Wedbush Securities.
Midnight struck for hypergrowth as tech companies splashed the cash like rock stars in the 1980s, continued the analyst.