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Google to slash 12,000 jobs as tech industry layoffs surge

Google is cutting 12,000 jobs, making it the latest technology giant to do so as the COVID-19 pandemic’s rapid expansion has peaked.

Sundar Pichai, the CEO of Silicon Valley powerhouse Alphabet, announced the news in an email to Google’s workforce on Friday. The statement was also posted on the company’s news blog. We’ve experienced periods of extraordinary growth over the last two years, Pichai wrote. “We hired for a different economic reality than the one we confront today in order to meet and fuel that development.”

He said the layoffs reflect a “rigorous review” carried out by Google of its operations. The jobs being eliminated “cut across Alphabet, product areas, functions, levels and regions,” Pichai said.

The cuts represent just over 6% of Alphabet’s workforce, which numbered 186,000 as of September, according to a securities filing. Like numerous other large tech companies, Alphabet added thousands of workers during the pandemic and is now moving to cut costs ahead of a possible economic recession later this year.

Employees who are laid off in the United States will also receive six months of health insurance, job placement assistance, and immigration support, as well as a severance payment starting at 16 weeks of pay plus two weeks for each consecutive year of employment with Google.

Pichai said “We are approaching 25 years old, so we will inevitably have challenging economic cycles. These are crucial times to narrow our focus, redesign our cost structure, and focus our resources—talent and money—on our top goals.”

Microsoft slashed 10,000 jobs earlier this week or about 5% of its workforce. Also in January, Facebook parent Meta revealed it is reducing 11,000 jobs, software firm Salesforce said it would lay off 7,000 employees, and Amazon indicated it would eliminate 18,000 jobs. In recent months, substantial layoffs or reduced hiring have also been reported by Netflix, Peloton, Twitter, and other industry leaders.

In a report, Wall Street analyst Adam Crisafulli of Vital Knowledge stated that “all the tech titans have now entered the layoff game,” adding that “myriad others are eliminating positions, too.”

Harsh Soni
Harsh Soni
Harsh is pursuing a graduation in Medicine. He has been working as a creative writer and news editor for the past 4 years. He is passionate about writing and learning new concepts.
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