Alphabet, Google’s parent holding company, has announced it will cut about 6% of its global workforce.
In a open letter published by Sundar Pichai, CEO of Google and Alphabet, the story followed a similar trajectory to that of other companies that have downsized in recent months, noting that the company had “adopted for a different economic reality” than the one it faces today. has to do. Simply put, it had bolstered its workforce during the pandemic-driven digital boom, but it must now reverse course as the world curtails its spending in the face of economic headwinds.
“We have conducted a thorough review of all product areas and functions to ensure our people and functions are aligned with our highest priorities as a company,” Pichai wrote, adding that the layoffs will affect units in Alphabet, not just Google. , and that all regions and product areas will be affected.
The news means that four out of five so-called “big technology“Companies have now announced significant layoffs in recent months, with Apple being the only one of the big five US tech giants not to have announced any layoffs.
In fact, earlier this week, Microsoft announced the cut of 10,000 jobs, affecting nearly 5% of its workforce, following Amazon’s decision to cut 18,000 jobs, or 1.2% of the global workforce. Facebook’s parent company Meta, meanwhile, announced 11,000 layoffs in November, affecting 13% of its workforce.
Other tech giants to announce significant layoffs in recent times include software giant Salesforce, which confirmed it was cutting 10% of its workforce at the turn of the year, affecting more than 7,000 employees.
It’s worth noting that Alphabet hasn’t been impervious to downsizing thus far. Robotic software arm Intrinsic announced last week that it would lay off 40 employees, representing 20% of its workforce, while life sciences subsidiary Verily scaled back by 15%, representing about 240 people.
But with today’s announcement, approximately 12,000 positions will disappear from the company worldwide.
In terms of severance pay, what Alphabet is offering American employees seems pretty generous at first glance. The company said packages will “start at” 16 weeks of salary, plus an additional two weeks for each year worked, while being paid in full for the entire notice period, which is a minimum of 60 days. In addition, it has committed to pay all outstanding bonuses for 2022 and unused vacation time, with six months of healthcare and additional support services.
Outside the US, Pichai simply said the company would “support employees in accordance with local practices”.