Technology company Google has announced that it will cut nearly 12,000 employees globally.
This was stated in a statement by the CEO of Google and Alphabet, Sundar Pichai.
The company has already sent out an email to lay off employees in the US. In other countries, the exemption will take longer due to local laws.
Pichai explains that Google has had periods of rapid growth over the past two years, so the company has been hiring new people, but now the economic reality has changed. Therefore, in order to reduce costs, the company announced discounts.
Laid-off workers are promised wages for at least 60 days after notice of the layoff, plus severance pay and bonuses.
In addition, the general manager noted that Google will focus on working on key products and services, in particular on improving artificial intelligence.
“Limitations in some areas allow us to make large bets over others. I am confident of the tremendous opportunities that lie ahead with the strength of our mission, the value of our products and services, and our early investments in AI.” – wrote the CEO of Google.
Downsizing of technology companies
So far, Google has become the latest tech giant to announce layoffs. As The Verge writes, the company is cutting 6% of its staff.
Earlier, Amazon announced the reduction of 18,000 employees (6% of all employees), Meta – 11,000 employees (13% of employees), Microsoft – 10,000 (5% of employees).
According to Bloomberg, throughout most of the coronavirus pandemic, tech companies have been actively hiring new employees. Now, companies are laying off fewer people than they’ve hired in the last two years, so the downturn in the industry isn’t as dramatic as it appears at first glance.
Elon Musk wants to lay off 3,700 people from Twitter, and the cuts have already begun – Reuters