Google announced on Friday that it will be laying off 12,000 employees from its workforce, joining a growing list of major tech companies that have been cutting jobs in recent weeks due to fears of an impending recession. In an email sent to the company’s staff, CEO Sundar Pichai stated that the layoffs will begin in the United States immediately and will take longer in other countries due to local laws and practices.
The company will be offering U.S.-based employees 16 weeks of severance pay plus two weeks for each additional year they’ve worked at Google, Pichai added. The move comes as tech companies are facing a variety of challenges, including rising interest rates and inflation over the past year that have affected technology shares and forced advertisers to cut back on online ad spending.
Hikes in interest rates from the U.S. Federal Reserve have also led to a decrease in appetite for American tech shares, putting pressure on companies to make deep cuts to their workforces. Earlier this week, Amazon announced job cuts affecting over 18,000 people, while Microsoft announced plans to lay off 10,000 workers. Twitter, under the leadership of Elon Musk, has also made redundancies, cutting over half of the company’s headcount since he took over as CEO in October.
Google’s decision to lay off 12,000 employees is a significant blow to the company, which has seen periods of dramatic growth over the past two years. However, Pichai stated that the company is confident about the huge opportunity in front of them thanks to the strength of their mission, the value of their products and services, and their early investments in AI. He also emphasized that the company will be supporting employees as they look for their next opportunity and will be offering a variety of benefits and services such as job placement services, immigration support, and 6 months of healthcare.
In conclusion, Google’s decision to lay off 12,000 employees is a reflection of the current economic climate and the challenges faced by tech companies. While it is a difficult decision, it is also an opportunity for the company to sharpen its focus and direct its talent and capital to its highest priorities. The company is committed to supporting its employees during this transition and will be offering a variety of benefits and services to help them find their next opportunity.