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Google slashes 12,000 jobs, layoffs across tech sector

Google slashes 12,000 jobs, layoffs across tech sector

Google is laying off 12,000 employees, or about 6% of its workforce, becoming the latest tech company to trim staff as the economic boom the industry rode during the COVID-19 pandemic.

Sundar Pichai, CEO of Google’s parent company Alphabet, on Friday informed the Silicon Valley giant’s employees about the cuts in an email that was shared with the company’s CEO. news blog,

It’s one of the company’s largest layoffs ever and adds to the thousands of other job losses recently announced by Microsoft, Amazon, Facebook parent Meta and other tech companies as they shed their belts amid a bleak outlook for the industry. Let’s tighten This month, at least 48,000 job cuts have been announced by major companies in the sector.

“Over the last two years we have seen a period of dramatic growth,” Pichai wrote. “To match and fuel that growth, we’ve hired for a different economic reality than we have today.”

He said the layoffs reflect a “rigorous review” of its operations by Google.

“Jobs are being eliminated across all Alphabet, product areas, functions, levels and regions,” Pichai said. He said he was “deeply sorry” for the layoffs.

Regulatory filings detail how Google’s workforce grew during the pandemic, reaching nearly 187,000 people by the end of last year, up from 119,000 at the end of 2019.

Pichai said Google, founded nearly a quarter-century ago, “is bound to go through tough economic cycles.”

“These are critical moments to sharpen our focus, realign our cost base, and direct our talent and capital to our highest priorities,” he wrote.

According to Pichai’s letter, there will be job cuts in the US and other unspecified countries.

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“The tech industry has been forced to scale back hiring and cut jobs” as the clock strikes midnight, with hyper growth and digital advertising headwinds on the horizon, Wedbush Securities analysts Dan Ives, Taz Kouzalgi and John Katsingris wrote Friday. Huh.

just this week, Microsoft announces 10,000 job cuts Or about 5% of its employees. Amazon said it is cutting 18,000 jobs this month, though that’s a fraction of its 1.5 million-strong workforce, while business software maker Salesforce is laying off nearly 8,000 employees, or 10% of the total. last fall Facebook parent meta announced It will eliminate 11,000 positions, or 13% of its workforce. Elon Musk had reduced jobs on Twitter after acquiring the social media company last time.

Smaller players are also being affected by the job cuts. UK-based cyber security firm Sophos laid off 450 employees, or 10% of its global workforce. Cryptocurrency trading platform Coinbase has cut nearly 20% of its workforce, around 950 jobs, in its second round of layoffs in less than a year.

“The stage is being set: Tech names across the board are cutting costs to maintain margins and get lean,” said Wedbush analysts.

Despite signs of a slowing economy, employment in the US has been resilient, and there were 223,000 more jobs were added in December, Yet the technology sector has grown at an exceptionally fast pace over the past several years as employees have turned to working remotely.

Many CEOs have taken the blame for growing too fast, yet those same companies, even after the latest round of job cuts, are much bigger than they were before the pandemic triggered the economic boom.

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