Alphabet, the parent company of Google, announced that it will be cutting 12,000 jobs from its global workforce. This news came as a shock to many as Alphabet had been on a hiring spree prior to the pandemic.
The layoffs, which amount to 6 percent of Alphabet’s global workforce, come in the wake of an economic downturn due to the pandemic. In a memo to employees, Alphabet’s Chief Executive, Sundar Pichai, acknowledged that the company had hired for a much different economic reality than the one they are now facing.
Alphabet is the latest tech giant to announce layoffs, following Apple, Microsoft, and Amazon, who have all made similar cuts in recent months. Alphabet’s decision to downsize its workforce is indicative of the economic uncertainty that has faced many companies since the pandemic began.
The job cuts are expected to hit Alphabet’s sales and marketing departments the hardest. This is unsurprising given that many companies have had to reduce their spending on these areas due to the drastic decrease in consumer demand.
The news of Alphabet’s job cuts comes as a blow to many of its employees, especially those who have only recently been hired. The company will be cutting by the end of 2021 and it is expected that the majority of those affected will be given severance packages.
Despite this, Alphabet is not the only tech giant to downsize its workforce. Other companies have made similar cuts, signaling the ongoing economic uncertainty that has been caused by the pandemic.
The news of Alphabet’s job cuts is a stark reminder of the difficult times that many companies, and their employees, are facing. While the full economic impact of the pandemic is yet to be seen, this announcement is likely to have an effect on the tech industry as a whole.