The layoff will affect all aspects of its business operation and the corporate services, contracting and engineering teams will be affected.
US multinational tech company Alphabet Inc (NASDAQ: GOOGL) may be crumbling under the weight of the size of its own staff and is considering laying off 12,000 workers. What reported Per Reuters, citing a company memo it reviewed, the layoff will affect its global operations, however the impact will be felt immediately in the United States.
The reduction will represent around 6% of the company’s workforce and CEO Sundar Pichai said he takes full responsibility for the decisions that lead the company to its current state. According to the CEO, Alphabet Inc had embarked on a hiring spree in preparation “for a different economic reality than the one we face today.”
The global economy was notably tested throughout 2022, as the lingering effect of the coronavirus pandemic was compounded by the outbreak of war between the duo of Russia and Ukraine. The war has been going on for over 10 months and its impact on the global supply chain has been quite massive.
Broader sentiment in the tech sector weighed on Alphabet’s share price and overall business prospects, as companies significantly cut advertising spending across the board. The culmination of these economic realities emerges as what is fueling your decision to lay off some of your staff.
The layoff will affect all aspects of its business operation and the corporate services, contracting and engineering teams will be affected. Alphabet said the layoff’s impact may be slower in other countries due to local labor laws.
Despite the prospect of layoff, Pichai was showered with praise for the company’s investments in Artificial Intelligence (AI).
“I am confident in the great opportunity that lies ahead of us thanks to the strength of our mission, the value of our products and services, and our early investments in AI,” he said in the note.
Alphabetical firing: a trend among tech giants
That Google’s parent company is laying off its workforce comes as no surprise, as other major tech giants including Meta Platforms Inc (NASDAQ:META), Amazon.com Inc (NASDAQ:AMZN) and Microsoft Corporation (NASDAQ:MSFT) ) among others have also followed this path.
Meta started the bold move last year in November when it announced that it will lay off 11,000 or 13% of its global staff at that time. Meta’s hit was lauded as Amazon said it will lay off 18,000 of its workers in what became clear the tech sector was hit beyond normal limits.
Microsoft is also planning a staff cut of 10,000 leaving only Apple Inc (NASDAQ: AAPL) as the only tech giant that has yet to announce plans to lay off some of its workers.
The layoff of tech workers justifies the strain faced by crypto companies like Coinbase Global Inc (NASDAQ: COIN) and Gemini when they announced their own job cuts in early 2022.
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Benjamin Godfrey is a blockchain enthusiast and journalist who enjoys writing about the real-life applications of blockchain technology and innovations to drive mainstream acceptance and global integration of emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain-based sites and media. Benjamin Godfrey is a lover of sports and agriculture.
