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The layoffs come after Microsoft and Amazon announced widespread cuts this month.
January 20, 2023
Google on Friday announced layoffs impacting 12,000 workers after a “review across product areas and functions.” The number amounts to 6% of its workforce.
Alphabet and Google CEO Sundar Pichai detailed the layoffs in an email sent to employees. He didn’t specify whether the layoffs impact Google Cloud.
Google’s Sundar Pichai
“Over the past two years, we’ve seen periods of dramatic growth,” Pichai said. “To match and fuel that growth, we hired for a different economic reality than the one we face today. I am confident about the huge opportunity in front of us thanks to the strength of our mission, the value of our products and services, and our early investments in artificial intelligence (AI). To fully capture it, we’ll need to make tough choices. So, we’ve undertaken a rigorous review across product areas and functions to ensure that our people and roles are aligned with our highest priorities as a company. The roles we’re eliminating reflect the outcome of that review. They cut across Alphabet, product areas, functions, levels and regions.”
Keep up with our telecom-IT layoff tracker to see which companies are cutting jobs and the ensuing channel impact.
U.S.-based employees impacted by the layoffs are receiving 16 weeks of severance pay plus two weeks for each additional year they’ve worked at Google.
Being constrained in some areas allows Google to bet big on others, Pichai said. Pivoting the company to be AI-first years ago led to “groundbreaking” advances across its businesses and the whole industry.
“Thanks to those early investments, Google’s products are better than ever,” he said. “And we’re getting ready to share some entirely new experiences for users, developers and businesses, too. We have a substantial opportunity in front of us with AI across our products and are prepared to approach it boldly and responsibly.”
Pichai said he remains optimistic about Google‘s ability to “deliver on our mission, even on our toughest days.”
“Today is certainly one of them,” he said.
In its fiscal third quarter 2022 earnings, Alphabet reported $69 billion in revenue and $13.9 billion in profit, compared to $65.1 billion in revenue and $18.9 billion in profit for the year-ago quarter.
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