Google will lay off 12,000 employees in a kind of pandemic critical to tech companies that have hired heavily in recent years and are now facing the harsh realities of a shrinking economy.
In an email to employees today, Sundar Pichai, CEO of Google and its parent company Alphabet, said:
“Over the past two years, we have seen periods of growth. impressive growth. To meet that and drive that growth, we recruited for an economic reality different from what we face today.
In the first quarter of 2020, Google employed just over 120,000 people, but that number dropped to 186,779 at the end of September last year. A major institutional investor has lobbied for change, calling on Google to cut costs, pay less staff and rethink its portfolio.
Pichai confirmed today, “We have conducted rigorous reviews of all areas and functions of our products to ensure our people and roles align with our highest priorities. us as a business. The roles we are removing reflect the results of this review. These include Alphabets, product domains, functions, levels, and regions.
The review began last year after Google reported a sharp drop in revenue growth for the third calendar quarter, growing only 6% to $69.1 billion and operating profit falling 9% to $17.135 billion. At the time, Google said it was reviewing every ongoing project.
The Simplicity Sprint was launched last summer as a way to increase employee productivity by 20%, and Google also urged employees to limit spending, including travel expenses.
Pichai disclosed in an employee memo that he will pay the employee a full notice period (minimum 60 days), severance beginning at 16 weeks, bonus payment, and time off in 2022, co. provide six months of health care benefits.
"As a nearly 25-year-old company, we've been forced to weather tough economic cycles," said the CEO
“These are key times to strengthen our focus, design our cost base, and direct our talent and capital to our highest priorities.
limitations in some areas allow us to bet big in others,"
Google is not alone, far from it: Amazon is laying off 18,000 employees, and Microsoft yesterday confirmed that it has laid off. 10,000 jobs and Salesforce announced earlier this month that it was cutting 10 percent or 7,300 jobs.
Pichai told staff there would be a town hall on Monday where they could ask questions. "In the meantime, take good care of yourself as you absorb this difficult news. With this in mind, if you're just starting your workday, please work from home today."
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