Alphabet, Google’s parent company, lays off 12,000 employees

Alphabet la societe mere de Google licencie 12 000 employes

What just happened? Another company has joined the long list of tech giants laying off swaths of employees. Alphabet, Google’s parent company, said it was cutting 12,000 jobs worldwide, or about 6% of its global workforce. The news comes just days after Microsoft confirmed it was cutting 10,000 jobs.

Alphabet chief executive Sundar Pichai told staff that the layoffs, which will impact jobs across all divisions of the organization, come after a rigorous test of the business. The CEO said he took “full responsibility for the decisions that got us here”.

Severance pay for U.S. employees includes at least 16 weeks of pay, their 2022 bonus, paid vacation and six months of health coverage. Pichai thanked the staff for “working so hard” and their “invaluable” contributions.

“While this transition will not be easy, we will support employees as they seek their next opportunity,” said Pichai. “Until then, please take good care of yourself as you absorb this difficult news. In this context, if you are just starting your working day, do not hesitate to work from home today. »

Working in tech is a risky profession right now. Many companies have massively increased their workforces during the pandemic to cope with increased demand for their services at a time when many people were stuck indoors. Most companies thought they could sustain this level of growth, but 2022 turned out to be a terrible year for the economy as inflation and interest rates soared and consumers restricted their spending.

In addition to layoffs from Microsoft and now Alphabet, Amazon recently confirmed it will be laying off a record 18,000 people, which it attributes to the uncertain economy and the company’s rapid hiring throughout. throughout the pandemic.

The tech industry saw more layoffs in the first week of January than in all of December. According to consulting firm Challenger, Gray & Christmas Inc (via Bloomberg), nearly 97,171 tech workers have lost their jobs in the United States since the start of 2022, up 649% from the previous year. , and that doesn’t include those just announced by Alphabet.

Alphabet’s third-quarter profits fell 27% year-over-year to $13.9 billion, leading to reduced hiring and investors calling for more aggressive spending cuts. Alphabet shares rose 1.8% in premarket trading after the layoffs were announced.