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Google Axes 12,000 Workers

by SuperiorInvest

Google’s parent company Alphabet Inc. (GOOG) will lay off about 6% of its workforce, or 12,000 people, the latest Big Tech company to lay off employees following a pandemic hiring spree.

Key things

  • Alphabet will lay off around 12,000 people, or 6% of its global workforce, according to a Jan. 20 company-wide memo.
  • The tech giant cited a changing economy and expanding too quickly during the pandemic as factors influencing the cut.
  • Alphabet is increasingly focusing on AI offerings as competition in the space grows.
  • Other tech firms including Microsoft, Amazon and Meta have recently announced similar layoff plans.

CEO Sundar Pichai said in a company-wide message that Google expanded too quickly in the early stages of the pandemic and that the company now faces “a different economic reality.” The tech giant’s global workforce rose to 187,000 in September from around 150,000 a year earlier.

Alphabet’s biggest round of cuts will affect all geographies and product areas. Pichai said they aim to redirect talent to priorities, including artificial intelligence, amid growing competition from upstart rivals such as OpenAI, maker of the popular ChatGPT chatbot.

Alphabet joins Microsoft Corp. (MSFT), which he said earlier this week that he would eliminate up to 10,000 positions in the face of potential profit declines. Amazon.com Inc. (AMZN), Meta Platforms Inc. (META) and Salesforce Inc. (CRM) have they also said they would be cutting staff in recent weeks. All told, tech firms have cut nearly 200,000 jobs since the start of 2022.

Shares of Alphabet Class C rose 4% in morning trading after the announcement.

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