Google’s parent company Alphabet will lay off 12,000 people as the tech industry scrambles to offset its recent losses, disappointing stocks and misguided hiring efforts.
According to an email from Google CEO Sundar Pichai, layoffs will be conducted effective immediately across the US, but international job cuts may take longer due to “longer due to local laws and practices.”
Pichai cited problems with overhiring in recent years as a reason for the job cuts – a shared sentiment across the tech industry.
Employees will receive a minimum of 60 days of severance, while also receiving six months of healthcare coverage, job replacement guidance and immigration support where needed.
“Over the past two years we’ve seen periods of dramatic growth. To match and fuel that growth, we hired for a different economic reality than the one we face today,” Pichai said in the memo to employees.
“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. To fully capture it, we’ll need to make tough choices. So, we’ve undertaken a rigorous review across product areas and functions to ensure that our people and roles are aligned with our highest priorities as a company. The roles we’re eliminating reflect the outcome of that review.”