What just happened? Another company has joined the long list of tech giants who have laid off massive numbers of employees. Alphabet, Google’s parent company, said it would cut 12,000 jobs worldwide, which is about 6% of the global workforce. This news comes just days after Microsoft confirmed the cancellation of 10,000 posts.
Alphabet CEO Sundar Pichai told employees that the cuts, which will affect jobs across the company, come after a rigorous business review. The CEO said he takes “full responsibility for the decisions that got us here”.
Severance packages for US employees include a minimum of 16 weeks of salary and bonus for 2022, paid holidays, and six months of health coverage. Pichai thanked the staff for their “hard work” and their “invaluable” contributions.
“While this transition will not be easy, we will support the staff as they look for their next opportunity,” said Pichai. “Until then, please take good care of yourselves as you digest this difficult news. And as part of that, if you are just starting your workday, feel free to work from home today.”
Working in technology is a very risky profession right now. Many companies have significantly increased their staff numbers during the pandemic to meet the growing demand for their services at a time when many people are stuck in their homes. Most companies thought they could sustain this level of growth, but 2022 was a bad year for the economy as inflation and interest rates skyrocketed and consumers curbed their spending.
In addition to Microsoft And now Alphabet is laying off, Amazon recently confirmed it will leave it A record 18,000 people, which he blames on the company’s unstable economy and rapid hiring throughout the pandemic.
Technology industry has seen More layoffs in the first week of January compared to the entire month of December. According to the consulting firm Challenger, Gray & Christmas Inc (trans bloomberg), nearly 97,171 tech employees have lost their jobs in the United States since the start of 2022, up 649% from the previous year, and that doesn’t include the jobs Alphabet just announced.
Alphabet’s third-quarter profit fell 27% year-over-year to $13.9 billion, dragging down hiring and calling for more drastic spending cuts by investors. Alphabet shares rose 1.8% in premarket trading after the layoffs were announced.