Google joins the fray – to lay off 12,000, facing “different economic reality”

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As tough economic times continue lurking, Google is now the latest tech giant to announce that it will be cutting down its staff members. Earlier this week, Microsoft announced its plan to cut 10,000 jobs over the next three months in a bid to cut down on its expenditure.

Sundar Pichai, CEO of Googe and Alphabet announced today that 12,000 people will be relieved of their responsibilities in the company and that the affected parties in the US have already been notified of the same. He further added that affected employees outside the US will be duly notified though there might be a slight delay because of local laws and practices.

Pichai further indicated that the ever-changing economy prompted this move. During the COVID-19 pandemic, Google hired a lot of employees to match the “dramatic growth” at the time which is no longer a reality at the moment.

The CEO further added:

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 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.

The affected parties will continue getting their paychecks during the notification period, and they’ll also receive a severance package as well as 2022 bonuses and remaining vacation time. What’s more, the affected parties will continue to receive healthcare coverage for up to 6 months, job placement services, and immigration support for those in the US with work visas.

Moving forward Google aims to sharpen its focus, re-evaluate its cost base, and finally, redirect its talent and capital to its “highest priorities” in a bid to keep up with the “difficult economic cycles”. Advances made in the company have greatly been attributed to the incorporation of AI which has placed it in a great position to provide better products to its customers.

Sundar further added that “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.”

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