Twelve thousand jobs will be lost at Google’s parent Alphabet

Twelve thousand jobs will be lost at Google’s parent Alphabet. In an internal email, Sundar Pichai, CEO of Google and Alphabet, claimed he took “complete responsibility” for the layoffs.

In all, the layoffs would affect 6% of Alphabet’s global staff (working in fields like recruiting and engineering).

The news comes after Microsoft disclosed 10,000 layoffs a few days earlier and Amazon announced 18,000 layoffs a few weeks before.

Mr. Pichai appreciated the staff’s “hard work” and “invaluable contributions,” praising their efforts as a whole.

Wedbush Securities analyst Daniel Ives commented that the layoffs demonstrate wasteful expenditure in an industry experiencing “hypergrowth.”

Twelve thousand jobs will be lost at Google's parent Alphabet

He explained that layoffs are happening throughout the tech industry because “tech stalwarts hired at a rate that was unsustainable” and “darker macro is pushing these redundancies across the tech sector.”

Including the layoffs reported by Alphabet on Friday, the total number of releases in the tech industry in the United States since the start of 2022 is approximately 194,000, according to the website Layoffs. FYI.

Growth has slowed due to excessive inflation and increasing interest rates, which has been disclosed by Hewlett Packard and distributed hosting giant Salesforce this month.

The European Union has begun implementing restrictions against US internet firms to prevent them from evading tax, restricting competition, benefitting from news material without paying, and functioning as platforms for misinformation and hate speech.

Mr. Pichai stated that it was “unsustainable” to continue operations in the United States and offered severance payments for employees.

Despite the difficulties, he remains “optimistic about our capacity to execute on our purpose,” he added.

Wall Street received the changes well, as seen by a 3.5% increase in Alphabet’s share price in premarket electronic trading.

According to analysts, tech giants reportedly overspent before due to a lack of foresight regarding an impending downturn.

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Although the change will be challenging, he assured staff that they would be helped in their search for new employment.

“Until then, I ask that you take care of yourself as you process this devastating information. Included in that, if you’re starting your workday, you’re welcome to do it remotely today.

According to a recent report filed with Companies House, the search giant employs around 5,500 people in the UK. However, it is not known exactly what percentage of these will be impacted by the reductions.

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