According to a recent report by Reuters, Alphabet Inc., the parent company of Google, is preparing to implement “Google Layoffs and Workforce Reduction” impacting around 12,000 employees. This move follows Microsoft’s recent announcement of similar layoffs, but Google is reportedly set to immediately lay off employees in selected regions, including the US. The layoffs could represent up to 6% of the entire company.
Google CEO Sundar Pichai confirmed the plans in an official update for January on the Keyword Blog, stating that the company aims to “reduce” the workforce by “approximately 12,000 roles.” Pichai cited “difficult economic cycles” as the reason for the cuts and emphasized the need to allocate “talent and capital” to Google’s “highest priorities,” with a focus on AI.
According to an internal staff memo seen by Reuters, Pichai confirmed that the firm will cut around 12,000 jobs across various sectors and business areas, originating from multiple locations, including recruitment and corporate teams, and encompassing different products and engineering departments within Google. US staff will be affected immediately, with global layoffs expected. Local employment laws may impact the process worldwide.
The affected employees have been informed and will receive compensation for the entire notification period of at least 60 days, including a severance program starting with 16 weeks of salary and two weeks’ salary for each additional year of employment at Google. All 2022 bonuses, remaining vacation days, and six months of health care for US-based employees are also expected to be paid out, along with support for immigration and information on job placement services.
According to The Wall Street Journal, U.S.-based employees who are affected by the “Google Layoffs and Workforce Reduction” will receive the option of two months’ advance notice, along with 16 weeks of severance compensation and two additional weeks for each year of employment at the company.
It is still being determined which areas Google will be cutting the least, but the recent shutdown of cloud-based games Stadia could result in fewer staff being included in the layoffs. Some of the most prominent employees behind the service, including Phil Harrison, are still listed by Google. However, this will likely change in the coming months as the company announces employee layoffs across various industries.
A Google spokesperson confirmed to The WSJ that the cutbacks will affect other Alphabet subsidiaries but did not specify which levels would be targeted. Alphabet is the parent company of various subsidiaries, including Waymo and Verily.
Google’s third-quarter earnings report showed a 6% jump in revenues in the third quarter of 2022. However, it was lower than initially expected and marked the slowest growth since 2013, with revenues falling nearly 30% over a year.
Despite the “Google Layoffs and Workforce Reduction at Alphabet Inc.,” Pichai remains confident in the company’s future growth, stating in a statement, “I am confident about the massive 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.