Google layoffs will affect 12,000 employees. Big tech layoffs continue with Alphabet. In an internal email, Sundar Pichai, CEO of both Google and Alphabet, admitted “full responsibility” for the layoffs. Six percent of Alphabet’s global staff, primarily in areas like recruitment and engineering, would be affected.
Google layoffs 2023: Big tech layoffs continue
Google added to the growing list of big U.S. technology businesses that have announced layoffs in recent months due to economic uncertainty and growing concerns about the possibility of a recession.
Google CEO Sundar Pichai announced in an email to employees on Friday that the business would start laying off employees in the United States immediately. It “will take longer owing to local laws and procedures” in other nations, he said. For example, more than 5,500 people work for Google in the UK, as of a recent report to Companies House. Yet how many of these will actually be impacted by the reductions remains unknown.
Pichai also announced that U.S.-based workers at the web search and video-sharing giant would be eligible for severance pay of 16 weeks plus two weeks for each additional year of service.
“While this transition won’t be easy, we’re going to support employees as they look for their next opportunity. Until then, please take good care of yourselves as you absorb this difficult news. As part of that, if you are starting your work day, please feel free to work from home today.”
Google layoffs 2023: Severance packages
Mr. Pichai has offered severance packages for US employees, including at least 16 weeks of income, the 2022 bonus, paid vacations, and six months of health coverage.
Despite the difficulties, he is “optimistic about our capacity to deliver on our purpose,” he said.
Wall Street loves layoffs
The cuts were well received on Wall Street, as evidenced by the 3.5 percent increase in Alphabet’s share price during premarket electronic trading.
According to some analysts, the big tech companies may have overspent in the past because they failed to anticipate a slowdown.
Biggest tech layoffs in 2022
The following tech companies saw the largest layoffs in 2022:
- Meta layoffs 2022: 11,000
- Amazon layoffs 2022: 10,000
- Snap layoffs 2022: 6,000
- Getir layoffs 2022: 4,480
- Twitter layoffs 2022: 3,700
- Bytedance layoffs 2022: 3,600
- Salesforce layoffs 2022: 2,100
- Stripe layoffs 2022:1,100
- Coinbase layoffs 2022: 1,100
- Microsoft layoffs 2022: 1,000
- Netflix layoffs 2022: 450
- Tesla layoffs 2022: 229
Don’t you remember them? We have already explained all of them and tried to find a reason. Check out our tech layoffs 2022 report.
Many companies that have released statements to the public have cited at least one of two primary causes of layoffs:
- Tech firms hired much personnel during the outbreak when people were heavily online. That new personnel seems too pricey now that the web boom has cooled and real life has resumed.
- Due to greater economic uncertainties, brands are currently less eager to spend on digital advertising, a source of revenue for many internet businesses. Due to increasing interest rates, venture funding is no longer available at a low cost.
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Will tech layoffs continue?
Tech companies have gone through a decade of tremendous growth and extravagant expenditure. Silicon Valley businesses that announced massive layoffs could be a leading indicator for the economy given the impending global recession, which may be considerably longer and harsher than many anticipate.
Due to the shifting economic landscape, tech companies may need to slow down their recent expansion and spending boom in favor of cost-cutting measures when possible. Unfortunately, because of that, we probably see more layoff news in the future.