Google wants to pay cut 12,000 jobs worldwide
The CEO of Google Inc. Sundar Pichai has sent an email expressing the plan of the company to reduce the amount of personell
On Friday 20th the company Alphabet parented by Google affirmed that about 12,000 jobs will be eliminated, more than 6% of its global workforce, becoming the latest big Hi-Tech company to reduce its staff after years of apparently growth and hiring. Before Alphabet Inc., Meta Platforms Inc., Twitter Inc. and Amazon.com have all shorted their ranks.
The content of the email
These cuts will be visible globally and will affect roles across the entire company,Chief Executive Sundar Pichai explains in an email to employees that was posted on the company’s website on Friday. “Over the past two years we’ve seen periods of dramatic growth,” Pichai claimed. He said also, “to match and fuel that growth, we hired for a different economic reality than the one we face today.”
Moreover, he mentioned he will take “full responsibility for the decisions that led us here.” In fact, regarding the affected US employees, they will remain on the company’s payroll for at least two months and receive 16 weeks of salary in severance with other benefits.
The reason behind the cuts
Google’s reduction in headcount is easily attributable to the heavy pressure of investors to adopt a more aggressive strategy to restrain spending. “The company has too many employees and the cost per employee is too high,” said TCI Managing Director Chris Hohn. Since 2017, Alphabet’s human resources increased more than 20% per year.
The CEO expressed the company desire to focus more on its own core business in line with key investments in artificial intelligence. “These are important moments to sharpen our focus, reengineer our cost base, and direct our talent and capital to our highest priorities,” he told.
The same happened in the past
Already in October 2022, the profit of the company declined 27% to $13.9 billion compared with the prior year, missing analyst expectation. That was the first-time which Google tried to curb its expenses reducing the number of new jobs more than half in the fourth quarter from the previous period. This sharp slowdown is due to inflation weights on consumer and decreasing of the demand for digital devices after Covid19 restrictions.
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