Alphabet, the parent company of Google, has announced that it will cut 12,000 jobs in its operations globally, representing 6% of its workforce.
This comes just two days after another tech giant, Microsoft, announced plans to lay off 10,000 workers.
Alphabet announced the layoffs in an open letter to its staff, blaming the decision on current financial headwinds. The letter added that his past hires did not prepare him for the current economic reality.
While the layoffs are global, Alphabet said they will affect US staff immediately, while the process will take longer in other countries due to local labor laws and practices. The company said it has already sent an email to affected employees.
The letter: Explaining the circumstances that led to the action, Google and Alphabet CEO Sundar Pichai in the open letter to staff said:
- “Over the past two years, we have seen periods of spectacular growth. To match and fuel that growth, we contracted for a different economic reality than the one we face today.
- “I am confident in the great opportunity that lies ahead of us thanks to the strength of our mission, the value of our products and services, and our early investments in AI. To fully capture it, we will have to make difficult decisions.
- “So we have conducted a rigorous review across all product areas and functions to ensure our people and roles are aligned with our highest priorities as a company. The roles we are removing reflect the outcome of that review. They span Alphabet, product areas, functions, tiers, and regions.
- “To the Googlers leaving us: Thank you for working so hard to help people and businesses everywhere. Their contributions have been invaluable and we are grateful for them.”
severance package: While the transition would not be easy for the affected staff, Pichai said the company will support them as they look for their next opportunity.
- “In the US: We will pay employees for the full notice period (minimum 60 days). We will also offer a severance package starting at 16 weeks salary plus two weeks for each additional year at Google, and accelerate at least 16 weeks of GSU acquisition.
- “We will pay the 2022 bonuses and the remaining vacation time. We will be offering 6 months of medical care, job placement services and immigration support for those affected. Outside of the US, we will support employees in accordance with local practices.” said the CEO.
Big Layoffs: With Alphabet’s announcement, 4 of the Big 5 global tech companies have announced significant layoffs in recent months, and Apple is the only one of the Big 5 US tech giants that hasn’t announced layoffs as of June. moment. .
Earlier this week, Microsoft announced 10,000 job cuts, affecting nearly 5% of its workforce, following Amazon’s decision to cut 18,000 jobs or 1.2% of its global workforce. . Facebook’s parent company, Meta, also announced 11,000 layoffs in November last year.