Layoffs began immediately in the U.S.; other countries will follow, says Google CEO
Google is the latest technology giant to announce mass layoffs amid ongoing economic challenges hitting the sector. CEO Sundar Pichai sent an email to the company’s staff Friday indicating that jobs cuts will begin immediately in the U.S., with other countries to follow.
Rising interest rates and infaction have contributed signifacntly to the cost cutting trend seen across the big tech space. In particular, increased interest rates from the U.S. Federal Reserve has lowered the interest for shares of these companies.
The memo also detailed the steps Google is taking to support those impacted “as they look for their next opportunity.” These steps include severance package starting at 16 weeks salary and six months of healthcare, job placement services and immigration support.
“As an almost 25-year-old company, we’re bound to go through difficult economic cycles,” wrote Pichai. “These are important moments to sharpen our focus, reengineer our cost base, and direct our talent and capital to our highest priorities.”
Like other tech companies recently forced to send such notices, Pichai also spoke of the company’s bright future, particularly as it pertains to going all in on AI.
“Being constrained in some areas allows us to bet big on others. Pivoting the company to be AI-first years ago led to groundbreaking advances across our businesses and the whole industry,” he said, adding that because of such investments, Google sees a “substantial opportunity in front of [it] with AI across [its] products and [is] prepared to approach it boldly and responsibly.”
Both Microsoft and Amazon just days earlier announced job cuts impacting 10,000 and more than 18,000 workers, respectively. In the telecom space, Vodafone, which has roughly 104,000 employees around the world, signaled its intentions to cut “several hundred” jobs after revealing disappointing profits in the first half of 2022. And T-Mobile US is reportedly cutting some of its staff as part of larger “organizational shifts.”
