Alphabet, the parent company of Google, made a sad proclamation on Friday that they would be trimming their global staff, resulting in an estimated 12,000 job losses – which accounts for 6% of their overall workers, its Chief Executive Officer Sundar Pichai said in an email to its employees on Friday. This news will be felt all around the world, and more significantly within departments such as Recruiting.
Google layoffs 2023
Google Layoff 2023 is a sad day for 12,000 of Google’s hardworking employees who will be losing their jobs. It’s a tough time for everyone, but Google is doing their best to make sure that those affected are taken care of. They are offering generous severance packages, career counseling, and other resources to help those affected find new employment.
It’s a sad moment for many, as the tech giant has been a leader in innovation and job creation for years. But the reality is that the industry is changing, and Google must adjust to the times.
Alphabet isn’t the only tech giant having to resort to these measures; Microsoft (parent company of LinkedIn) and the likes of Meta and Amazon have all announced layoffs since past month.
In the past month alone, tech companies have been forced to cut around 50,000 jobs. In recent years, the tech sector had been on a hiring spree due to increased demand for their products, software, and services as millions of people continued to work remotely.
During the pandemic, many of these big tech companies ramped up their staff numbers to handle the huge demand, yet now must face the reality of an uncertain economy coupled with historic high inflation rates.
Alphabet is offering an attractive severance package to those affected that includes 16 weeks’ salary plus two more weeks for each additional year of service at Google. At least 16 weeks’ worth of Google Stock Units (GSU) vesting will also be accelerated, providing holders with rights to Alphabet Inc. capital stock. Additionally, 2022 bonuses and remaining vacation days will be paid out, and a generous six-month healthcare, job placement and immigration support plan is available
How much Albhabet will save with this action?
Mark Shmulik from Bernstein said that layoffs could save Alphabet up to $3 billion in costs.
US and Overseas
In the United States, where Alphabet has already emailed affected employees, staff would receive severance and six months of healthcare as well as immigration support.
Overseas, layoff notifications will take longer due to local employment laws and practices, Pichai said in the memo. Employees in Asia will learn starting in February if the reduction impacts them.
Below is the full text of the email sent by Sundar Pichai to all employees.
I have some difficult news to share. We’ve decided to reduce our workforce by approximately 12,000 roles. We’ve already sent a separate email to employees in the US who are affected. In other countries, this process will take longer due to local laws and practices.
This will mean saying goodbye to some incredibly talented people we worked hard to hire and have loved working with. I’m deeply sorry for that. The fact that these changes will impact the lives of Googlers weighs heavily on me, and take full responsibility for the decisions that led us here.
Over the past two years we’ve seen periods of dramatic growth. 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 AL.
To fully capture K, 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.
To the Googlers who are leaving us: Thank you for working so hard to help people and businesses everywhere. Your contributions have been invaluable and we are grateful for them.
While this transition won’t be easy, we’re going to support employees as they look for their next opportunity (you can find more details here)
In the US:
We’ll pay employees during the full notification period (minimum 60 days).
We’ll also offer a severance package starting at 16 weeks salary plus two weeks for every additional year at Google, and accelerate at least 16 weeks of GSU vesting
We’ll pay 2022 bonuses and remaining vacation time. We’ll be offering 6 months of healthcare, job placement services, and immigration support for those affected.
Outside the US, we’ll support employees in line with local practices.
As an almost 25-year-old company, we’re bound to go through difficult economic cycles. These are important moments to sharpen our focus, reengineer our cost base, and direct our talent and capital t our highest priorities.
Being constrained in some areas allows us to bet big on others. Pivoting the company to be Al-first years ago led to groundbreaking advances across our businesses and the whole industry.
Thanks to those early investments, Google’s products are better than ever. 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 Al across our products and are prepared to approach it boldly and responsibly.
All this work is a continuation of the “healthy disregard for the impossible that’s been core to our culture from the beginning. When look around Google today, I see that same spirit and energy driving our efforts. That’s why remain optimistic about our ability to deliver on our mission, even on our toughest days. Today is certainly one of them.
I’m sure you have many questions about how we’ll move forward. We’ll be organizing a town hall on Monday. Check your calendar for details. Until then, please take good care of yourselves as you absorb this difficult news. As part of that, if you are just starting your work day, please feel free to work from home today.