Google parent Alphabet Inc. will eliminate 12,000 employees, more than 6 percent of its global workforce. This was revealed in an email sent to the company’s employees by Sundar Pichai, the chief executive officer of Alphabet Inc. on Friday.
In the email, he categorically states that he takes full responsibility for the actions that led to this, as well as the decisions taken. The cuts affect multiple business units. According to the Wall Street Journal, Alphabet’s recruiting group and departments focused on areas “outside the company’s core business.” Some engineering and product teams are also affected, according to CNBC.
Alphabet has not yet provided any information, but according to The Information, among those fired there are people who have performed excellently and some have earned from 500 000 to 1 million dollars a year.
Under Prabhakar Raghavan, who was in charge of search, ads, commerce and other areas, they covered Google Cloud, Chrome, Android and search.
Google Cloud, in particular, is said to have fired “workers in strategy, recruiting and so-called go-to-market teams that offer marketers data, training and research to close deals.”
The good news is that laid-off employees will receive at least two months’ notice, 16 weeks’ severance pay and two additional weeks’ pay for each year they worked for Alphabet. The vesting period for their restricted stock will be shortened by at least 16 weeks. Alphabet also plans to offer six months of medical coverage, job placement assistance and immigration assistance. The reason for the cuts are cost cutting measures being taken to stay afloat in these difficult times.
This is another company that has come to this decision. Meta Platforms Inc, Twitter Inc. and Amazon.com Inc. are just a few examples of tech corporations that have also cut staff to keep operations going.
Tough economic times bring with them a not-so-pleasant trend of layoffs that is growing.