The layoff will affect every aspect of its business operation and teams from corporate services, recruitment, and engineering are affected.
American multinational technology company Alphabet Inc (NASDAQ: GOOGL) may be crumbling under the weight of its own staff size and is considering a 12,000 workers layoff. As reported by Reuters, citing a company’s memo it reviewed, the layoff will cut across its global operations, however, the impact will be immediately felt in the United States.
The retrenchment will represent some 6% of the company’s workforce and Chief Executive Officer Sundar Pichai said he takes full responsibility for the decisions that lead the company to its current state. According to the CEO, Alphabet Inc had gone on a hiring spree in preparation “for a different economic reality than the one we face today.”
The global economy was tested remarkably throughout 2022 as the lingering effect of the coronavirus pandemic was further compounded by the outbreak of a war between the duo of Russia and Ukraine. The war has lasted for more than 10 months and its impact on the global supply chain has been quite massive.
The broader sentiment in the tech sector affected Alphabet’s share price and general business outlook as the expenditure on advertising was significantly slashed by firms across the board. The culmination of these economic realities comes off as what is fueling its decision to let some of its staff go.
The layoff will affect every aspect of its business operation and teams from corporate services, recruitment, and engineering are affected. Alphabet said the impact of the layoff may be slower in other countries due to local labor laws.
Despite the outlook of the layoff, Pichai rained accolades on the company’s investments in Artificial Intelligence (AI).
“I am confident about the huge opportunity in front of us thanks to the strength of our mission, the value of our products and services, and our early investments in AI,” He said in the note.
Alphabet Layoff: a Trend among Tech Giants
That the Google parent company is laying off its workforce is not coming as a surprise as other major tech giants including Meta Platforms Inc (NASDAQ: META), Amazon.com Inc (NASDAQ: AMZN), and Microsoft Corporation (NASDAQ: MSFT) amongst others have also trailed this path.
Meta started the bold move last year in November when it announced it will be laying off 11,000 or 13% of its global staff at the time. The Meta blow was complimented when Amazon said it will ax 18,000 of its workers in what became apparent that the tech sector was battered beyond normal.
The tech workers’ layoff justifies the strain that crypto companies like Coinbase Global Inc (NASDAQ: COIN) and Gemini faced when they announced their own job cuts earlier in 2022.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.