It’s a new year, and with that comes new changes for Google’s parent company, Alphabet. In a company-wide email sent to employees, CEO Sundar Pichai announced that the company would be laying off 12,000 employees, or around 6% of its global workforce.
While this may come as a surprise to some, Pichai assures that it was a “difficult decision” and that he takes “full responsibility for the decisions that led us here.” The layoffs will be felt globally and across the entire company, but Pichai assures that the company is making these changes to set itself up for the future.
Alphabet went on a hiring spree over the last few years during a period of “dramatic growth,” but Pichai said that “we hired for a different economic reality than the one we face today.” Google saw a 27% drop in profit last quarter compared to the year before, which led to the decision to reduce expenses and hiring. Activists and analysts have called for more aggressive cuts, noting that the company’s headcount had gone up 20% since 2017.
But don’t worry, Pichai assures that employees will be taken care of during this transition period. Employees will be paid during the full notification period of 60 days minimum. And Alphabet will also offer severance packages starting at 16 weeks salary plus two weeks for every additional year at Google. The company will also accelerate at least 16 weeks of GSU vesting, pay 2022 bonuses and remaining vacation time, and offer 6 months of healthcare, job placement services, and “immigration support for those affected.”
Google has also been cutting expenses in other areas, such as shutting down Stadia, canceling the next-generation Pixelbook laptops, and more. But don’t worry, the company is not slowing down. In fact, they’re planning to focus even more strongly on AI and will “share some entirely new experiences for users, developers and businesses.”
Over the past two weeks, other major companies such as Microsoft, Amazon, and Meta have also announced layoffs. But Alphabet assures that they’re making these changes to set themselves up for a brighter future.
For the latest tech news, follow Techbar Nepal on Facebook, and Instagram.
For Digital Products and Services: Maurisys Software
