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Sundar Pichai Announces Job Cuts: Google is Set to Layoff 12,000 Employees

Sundar Pichai has stated that affected employees will receive incentives

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Sadaf Hasan
Sadaf Hasan
Aspiring reporter covering trending topics

UNITED STATES: Sundar Pichai, CEO of Google announced on Friday that the tech giant will lay off 12000 employees globally, adding to a slew of other tech behemoths’ job cuts amid looming economic woes.

Affected Google employees in the US have already gotten an email, and affected staff members overseas will be notified soon.

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Sundar Pichai announces that layoffs will start immediately

The CEO of Google and Alphabet, Sundar Pichai, said in an email sent to the company’s workforce that layoffs will start immediately in the United States. The process “will take longer due to local laws and practices” in other countries, he stated.

The business undertook a “rigorous assessment” across product categories and functions to make sure that current responsibilities are aligned with the firm’s highest priorities, the email reads.

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In the letter, Pichai also emphasises that the business will guarantee a seamless “transition” for the affected employees. Throughout the whole notice period, Google will pay its employees (for a minimum of 60 days).

It claims to offer a severance payout beginning at 16 weeks’ salary plus two weeks for each extra year spent working for Google. Bonuses and healthcare benefits are also provided to entitled employees in accordance with their contracts.

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However, Google employees who work outside of the US will be given a severance payout in accordance with their contracts and local regulations.

Pichai adds that Google will host a town hall meeting with its staff on Monday. “As an almost 25-year-old company, we’re bound to go through difficult economic cycles. These are important moments to sharpen our focus, re-engineer our cost base, and direct our talent and capital to our highest priorities,” his letter continues.

While the announcement of mass layoffs is unfortunate, the development is not wholly unexpected. In the middle of 2022, Google halted hiring, and Pichai even said that staff members weren’t working hard and they shouldn’t equate fun with money. “We don’t always get to choose the macroeconomic conditions,” Pichai has previously stated.

Although the CEO of Google has stated that affected employees will receive incentives, a recent report claims that Google has postponed issuing year-end bonus checks to staff members this year. Google employees usually receive a full bonus in January of each year, so this is quite rare for them.

On the other hand, a report asserted that the business board had authorised a new equity award for CEO Sundar Pichai that more closely links his remuneration to performance.

The statement from Google comes only days after Microsoft cut 10,000 jobs. Other tech behemoths, such as Twitter and Meta, have also laid off thousands of employees because of the downturn in the global economy.

Amazon started a new round of layoffs on Wednesday, affecting more than 18,000 workers. Since Elon Musk became CEO in October, Twitter has also made layoffs, reducing its workforce by more than half.

Google, like many other IT firms, had acknowledged that it overhired during the height of the COVID-19 pandemic when everyone was compelled to work from home. As a result, people spent more time online, and tech firms forecasted growth following the pandemic.

However, the Russia-Ukraine War and many other macroeconomic factors caused tech companies to start feeling the heat. If the situation doesn’t get better, Google or other big corporations might subsequently let go of more employees.

Also Read: Amazon Announces over 18,000 Job Cuts as Major Layoffs Continue into 2023


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