Alphabet Inc.., parent company Googleannounced that it will lay off nearly 12,000 people, more than 6 percent of its global workforce, and will become the latest tech giant to cut employees after years of strong growth and hiring.
The cuts will impact employment globally and company-wide, the statement said on Friday. Sundar Pichai, CEO of the companyIn an email to employees, he said he “takes full responsibility for the decisions that brought us here.”
Shares of Alphabet rose as much as 1.8 percent in preview trading.As for the New York opening after the announcement was made public. The stock has fallen 30 percent in the past year.
with layoffs, Google joins other tech giants slashing operations amid a faltering global economy and hyperinflation. Meta Platforms Inc., Twitter Inc. and Amazon.com Inc. reduced the workforce.
Thanks to its strong search business, Google has been one of the longest standing tech companies. But the company is facing a slowdown in digital advertising, and its cloud computing division continues to lag behind. Amazon Y Microsoft Corp..
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“This is a critical time to sharpen our focus, reshape our cost base, and direct our talent and capital towards our top priorities,” Pichai said in the email. He said the company has “a significant opportunity ahead” in artificial intelligence, a key investment area where Google has recently faced increased competition.
Pichai said Alphabet will pay affected employees a minimum of 16 weeks of severance pay and six months of medical benefits in the United States, and other regions will receive packages in accordance with local laws and practices. He noted that the bonds will not be affected.
Source: Exame
