12,000 Google Employees to be Affected: Alphabet Inc Announces Layoffs Amid Economic Downturn

 

Alphabet Layoffs 2023: 12,000 Employees to be Affected



Google's Parent Company, Alphabet Inc, announces layoffs of 12,000 employees

In an email communication to staff on January 20, Google CEO Sundar Pichai announced that Alphabet Inc, the parent company of Google, is preparing to layoff 12,000 employees across its various sections. Pichai stated that employees in the US have already been informed of their severance while those in other countries will be informed in due course, in accordance with local laws and practices.

Why is Google laying off workers?

Like many other tech companies, Google has been deeply affected by the funding winter as investors pull back amid a looming recession and customers also tighten their purse strings as the pandemic-induced discretionary spending or reliance on tech ends.

Pichai explained that Google had seen periods of dramatic growth over the last two years, but with the current economic reality, the company had to take a review of its product areas and functions and realign its people and roles with its highest priority areas, specifically related to Artificial Intelligence.

The 25-year-old Google, like other big names in the industry, is not immune to the tech nightmare currently giving the industry sleepless nights. The pandemic-era boom has now gone bust.

Tech Layoffs So Far

According to layoff tracker layoffs.fyi, 133 tech companies have laid off 38,815 workers in 2023 so far. That is, within just 20 days of the new year, 1940 workers were laid off on an average everyday worldwide. In 2022, 1030 tech companies severed 1,54,843 workers. The trend of cutting costs began in early 2022 and peaked in November, possibly due to the holiday season and then picking up again in January.

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Impact of Layoffs on Google's Future

The decision to layoff 12,000 employees is not one that was taken lightly by Alphabet Inc. It is a reflection of the current economic reality that companies, including those in the tech industry, are facing. The pandemic has greatly impacted consumer spending and investor confidence, leading to a slowdown in growth for many companies.

However, Google, like any business, must adapt to the current situation and make difficult decisions in order to ensure its long-term success. The company is now focusing on areas that are considered high priority, such as Artificial Intelligence, in order to remain competitive in the market.

While the layoffs will certainly be a difficult transition for those affected, it is important to remember that companies must make tough decisions in order to survive and thrive in the long run. Google, with its strong reputation and history of innovation, will continue to be a leader in the tech industry.

What's next for Google?

Despite the layoffs, Google will continue to invest in innovation and technology to drive the company's growth and success. The company's focus on Artificial Intelligence and other high-priority areas will allow it to continue to be a leader in the industry and offer new and exciting products and services to customers.

Google has also been known for its strong employee culture and support programs, and will be providing affected employees with severance packages and career support to help them through this transition.

Overall, while the layoffs are certainly a difficult decision, they are a necessary step for Alphabet Inc and Google to navigate the current economic reality and position the company for future success

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