Google’s parent company Alphabet is set to lay off 12,000 of its employees worldwide; Google CEO Sundar Pichai apologizes by taking “full responsibility”.
Image Source: https://www.businesstoday.in/
Google’s parent company Alphabet joins a host of tech companies as it sets to lay off 12,000 of its employees worldwide i.e., 6% of its workforce.
Sundar Pichai, CEO of Google apologized to his employees in an email and thanked them “for working so hard to help people and businesses everywhere.”
Image Source: https://www.bbc.com/
Amidst rising inflation and a faltering global economy, big companies such as Twitter and Amazon have also laid off numerous employees in recent times and Google has now joined the unofficial club.
Google has always avoided such major workforce reductions but a slowdown in digital advertising has forced them to do so. Their division of cloud computing is also trailing behind competitors Amazon and Microsoft.
The job cuts have occurred across all sectors of companies and are set to affect various aspects like recruiting, engineering, and product teams. Even though the layoffs have occurred globally, the US staff is expected to be affected immediately.
The cuts come days after rival Microsoft announced that it would lay off 10,000 of its own employees.
According to Pichai, “These are important moments to sharpen our focus, re-engineer our cost base, and direct our talent and capital to our highest priorities,”
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The company leader has also confirmed that the impacted employees in the US will receive a severance package. The severance package includes 16 weeks of salary, at least 16 weeks of GSU vesting, and two weeks for every additional year at the company.
The company is also willing to pay bonuses for 2022 and the remaining vacation time. Many benefits like 6 months of healthcare, job placement services, and immigration support for the affected are offered to the laid-off employees.
Meanwhile, those affected outside the US will receive support from the company in line with local practices.
Pichai sent a heartfelt apology email to the employees where he takes “full responsibility for the decisions that led us here.”
Earlier Reuters had reported that the company is deferring a portion of its employees’ year-end bonuses as part of a transition to a new performance management system.
According to Chief Financial Officer Ruth Porat, the number of jobs will fall by more than half in the fourth quarter from the previous period.
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