Google parent Alphabet Inc to cut 12,000 jobs
In the latest series of layoffs by major tech giants, Google parent company Alphabet Inc. is cutting 12,000 jobs, a report said on Friday.
According to a staff memo by Alphabet’s chief executive Sundar Pichai, Google is letting go 12,000 employees which would impact its US and global staff immediately, Reuters reported.
In his letter, Pichai said that the company took a ‘rigorous review across product areas’ to ensure that current roles are aligned with the company’s highest priorities.
Pichai’s letter highlights that the company will ensure a smooth ‘transition’ for the impacted workers.
Google will pay employees during the full notification period (minimum 60 days). It says that it would offer a severance package starting at 16 weeks’ salary plus two weeks for every additional year at Google. Entitled workers will also receive bonuses and healthcare benefits as per their contracts. On the other hand, Google workers outside the US will receive a severance package as per their contracts and local guidelines.
The letter adds that Google will organize a town hall with employees on Monday.
The cuts come mere days after rival Microsoft said it would lay off 10,000 workers and the latest to shake the technology sector.
According to the report, the job cuts affect teams across the company including recruiting and some corporate functions, as well as some engineering and products teams.
The news comes during a period of economic uncertainty as well as technological promise, where Google and Microsoft have been investing in a fledgling area of software known as generative artificial intelligence.
Earlier this week, Microsoft said it would eliminate 10,000 jobs and take a $1.2 billion charge to earnings, as its cloud-computing customers reassess their spending and the company braces for potential recession.
The layoffs add to the tens of thousands announced in recent months across the technology sector, which has downshifted following a strong growth period during the pandemic.
The news comes even as the software maker is set to ramp up spending in generative artificial intelligence that the industry sees as the new bright spot.
Microsoft CEO Satya Nadella said which affect less than 5 percent of Microsoft’s workforce, would conclude by the end of March, with notifications beginning Wednesday.
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