Alphabet Inc., the parent company of Google, announced that it will be cutting 12,000 jobs worldwide in a company-wide memo from CEO Sundar Pichai. This represents over 6% of the company’s workforce. The cuts are expected to affect workers both in the United States and globally, though it is not yet clear which teams will be affected.
This news comes on the heels of similar announcements from other technology companies, including Microsoft, which recently announced plans to lay off 10,000 workers. Pichai cited a changing “economic reality” as the reason for the layoffs, explaining that the company had hired for a different economic environment than the one it currently faces.
Despite these job cuts, Pichai emphasized the company’s continued commitment to its mission and the value of its products and services. He also highlighted the company’s investments in artificial intelligence as a source of future growth and opportunity.
Google will be providing support to affected workers, including paying them during the full notification period, a minimum of 60 days. Additionally, workers will be offered severance packages starting at 16 weeks salary, plus two weeks for every additional year at Google, with 2022 bonuses and remaining vacation time also expected to be paid. Workers in the United States will also be offered six months of health care, job placement services, and immigration support if needed. For workers outside the U.S., the company will support employees in line with local practices.