MOUNTAIN VIEW, UNITED STATES – 2020/02/23: American multinational technology company Google logo seen at Googleplex, the corporate headquarters complex of Google and its parent company Alphabet Inc. (Photo by Alex Tai/SOPA Images/LightRocket via Getty Images)
Google parent Alphabet Inc. on Friday became the latest addition to an increasing list of technology companies that have announced plans to reduce headcount because of overhiring during the last several years and fears of recession.
The company plans to fire 12,000 employees or reduce headcount by about 6% — the largest-ever round of layoffs for the tech firm.
Chief Executive Officer Sundar Pichai wrote an email to employees about the layoffs on Friday, posted on the company’s blog, titled “A difficult decision to set us up for the future.”
“I have some difficult news to share,” Pichai wrote at the start of the email. He cut right into it, telling employees:
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.
He explained the business environment a few years ago had dramatically changed, explaining:
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.
The reductions will be across Alphabet units and geographies:
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
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