12,000 job layoffs announced by Google CEO Sundar Pichai

Google has declared that it would let go of 12,000 workers worldwide. Affected Google employee members in the US have already received an email, and affected staff members overseas will be alerted soon. The business undertook a “rigorous assessment across product categories,” according to Google CEO Sundar Pichai, to make sure that present responsibilities are in line with the company’s primary goals. It remains unclear which department is most affected by the new wave of mass layoffs.

The business will facilitate a seamless “transition” for the affected employees, according to Pichai’s letter. Employees will be paid by Google for the whole notice period (minimum 60 days). According to the statement, a severance payout starting at 16 weeks’ salary plus two weeks for each subsequent year spent working at Google will be provided. In accordance with their contracts, entitled employees will also earn bonuses and healthcare benefits. While outside the US, Google employees will be given a severance compensation in accordance with their contracts and local laws.

Google will have a town hall meeting with employees on Monday, according to Pichai. As a business that is almost 25 years old, he writes, “We must experience challenging economic cycles. These are crucial times to hone our attention and rethink.

Despite being regrettable, the news of huge layoffs is not wholly unexpected. Google stopped hiring in the middle of 2022, and Pichai even said that employees weren’t working hard and shouldn’t confuse enjoyment with money. We don’t always get to select the macroeconomic circumstances, according to Pichai.

Although the Google CEO has stated that affected staff would get incentives, a recent report contends that Google has postponed this year’s year-end bonus payments. For Google employees, this is uncommon because they typically receive a full bonus in January of each year.

The business board allegedly authorised a new equity reward for CEO Sundar Pichai, though, that more closely links his remuneration to performance.

Google’s announcement comes days after Microsoft laid off 10,000 workers. Other tech giants such as Meta and Twitter have also fired thousands of workers owing to the weakening of the global economy.

Twitter, since Elon Musk’s takeover last year, has trimmed half of its workforce. The company currently has roughly 2,000 staff. The social media giant fired more workers earlier this week. Some other American tech giants that laid off workers to cut expenses include HP, Adobe, and Salesforce. On the other hand, several Indian tech firms such as Swiggy, Dunzo, and more have laid off hundreds of workers.

Like many other IT firms, Google has claimed that at the height of the COVID-19 epidemic, when everyone was compelled to work from home, it overhired. Users spent more time online as a result, and tech firms forecasted growth following the outbreak. But with the conflict between Russia and Ukraine and other socioeconomic issues, tech companies began to feel the pressure.

If the situation doesn’t change, Google or other digital goliaths may subsequently fire additional staff.