Google parent Alphabet announced on January 20 that it is planning to cut about 12,000 jobs, or 6 percent of its workforce worldwide, as tech layoffs spread among businesses, according to Bloomberg.
The job reductions will impact every position in the company and worldwide. Today’s email from CEO Sundar Pichai to staff members stated that he accepts “full responsibility for the decisions that brought us here.”
Pichai continued, “These are crucial times for us to narrow our focus, reengineer our cost structure, and direct our talent and capital to our highest priorities.
Teams from across the organisation, including recruiting, some corporate functions, some engineering, and product teams, are impacted by the job cuts. According to Google, the layoffs are global and immediately affect US employees.
With the layoffs, Google joins a slew of other tech behemoths that have drastically reduced operations in the face of a failing global economy and surging inflation. All four Twitter, Amazon.com, Microsoft, and Meta Platforms have reduced staff.
Pichai added in the announcement that the tech giant would “support employees as they look for their next opportunity. Pichai said the company will pay workers during the entire notification period in the US.
Additionally, Google will accelerate the vesting of at least 16 weeks of GSUs and provide a severance package that begins at 16 weeks of salary plus two additional weeks for each additional year of employment.
For those impacted, the company will pay bonuses for 2022 and any unused vacation time, as well as provide 6 months of healthcare, job placement assistance, and immigration support. Additionally, outside of the US, the search engine behemoth will support staff in accordance with regional customs.
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As part of the transition to a new performance management system, Google is delaying a portion of its employees’ year-end bonuses, according to a recent Reuters report.
According to a company spokesperson who spoke to Reuters, the company will initially pay eligible employees an advance bonus of 80% and the remaining amount will follow in later months. The move was announced to the staff last year.
The company, however, reported earnings and revenue in October that fell short of analyst expectations. Compared to the prior year, profit dropped by 27% to $13.9 billion.
At that time, Pichai promised that Google would cut costs, and Ruth Porat, the chief financial officer, predicted that the number of new positions would decrease by more than half from the third quarter to the fourth.
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