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Google lays off 12,000 blaming ‘completely different financial actuality’ as mass tech layoffs proceed

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Google headquarters is seen in Mountain View, California, United States on September 26, 2022.



(Picture credit score: Tayfun Coskun/Anadolu Company through Getty Photos)

Google’s mum or dad firm, Alphabet, is shedding round 12,000 staff in one of many largest mass redundancies the tech business has seen up to now few months.

In an open letter (opens in new tab) to staff, CEO Sundar Pichai experiences that the job cuts will have an effect on these throughout the corporate’s worldwide operations.

“I’ve some troublesome information to share,” Pichai says. “We’ve determined to cut back our workforce by roughly 12,000 roles. We’ve already despatched a separate electronic mail to staff within the US who’re affected. In different international locations, this course of will take longer as a consequence of native legal guidelines and practices.”

Pichai says he takes “full accountability” for the layoffs.

“Over the previous two years we’ve seen intervals of dramatic development. To match and gas that development, we employed for a unique financial actuality than the one we face right now.”

In November final yr, an Alphabet investor, proudly owning round a $6 billion stake within the firm, is reported to have informed Sundar Pichai to chop wage prices (opens in new tab) and cut back headcount. This got here after CEO Pichai had already confirmed a slowdown of hiring and funding (opens in new tab) from July, 2023.

Google’s numbers had swelled to 186,779 staff by Q2 2023, which implies this spherical of job cuts will see simply over 6% of the corporate’s workforce lose their job.

In Q3, 2023, Google introduced income of $69 billion, up 6% year-over-year. The corporate’s internet revenue was $13 billion for the three months ending in September, down from almost $19 billion the earlier yr. The lion’s share of its income comes from Google Search and Google promoting, although we’re undecided we belief Google’s advert spots (opens in new tab) to click on on them from right here on out.

Pichai reiterates its deal with AI for its remaining staff, “Being constrained in some areas permits us to wager massive on others. Pivoting the corporate to be AI-first years in the past led to groundbreaking advances throughout our companies and the entire business.”

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“Due to these early investments, Google’s merchandise are higher than ever. And we’re on the point of share some fully new experiences for customers, builders and companies, too. We now have a considerable alternative in entrance of us with AI throughout our merchandise and are ready to strategy it boldly and responsibly,” Pichai continues.

These layoffs aren’t an remoted incident within the wider tech business. Meta laid off over 11,000 (opens in new tab) staff in November final yr, and Microsoft solely this week introduced it’s making 10,000 job cuts (opens in new tab). Amazon introduced the largest spherical of job cuts (opens in new tab), affecting 18,000 individuals.

That is over 50,000 individuals with out jobs from simply 4 of Silicon Valley’s largest corporations. 

Intel has additionally confirmed extra job cuts at its Santa Clara headquarters (opens in new tab). The chip maker is predicted to announce extra within the close to future. 

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Jacob earned his first byline writing for his personal tech weblog from his hometown in Wales in 2017. From there, he graduated to professionally breaking issues as {hardware} author at PCGamesN, the place he would later win command of the equipment cabinet as {hardware} editor. These days, as senior {hardware} editor at PC Gamer, he spends his days reporting on the most recent developments within the expertise and gaming business. When he isn’t writing about GPUs and CPUs, nevertheless, you will discover him attempting to get as far-off from the trendy world as doable by wild tenting.

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