Google CEO Sundar Pichai announced in an email to employees on Friday that Google will immediately start cutting about 12,000 jobs in the United States. According to CNBC.
“We have decided to cut approximately 12,000 jobs,” he wrote.
“This will mean saying goodbye to some very talented people we worked so hard to hire and enjoyed working with. I’m deeply sorry for that…I take full responsibility for the decisions that brought us here,” he added.
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Like many tech companies, Google has been affected by the Fed’s rate hikes. This, along with inflation, has led to a reduction in digital ad spending.AP reports ‘significant’ drop in Google ad revenue in late October famous.
Google also deferring 20% employee bonuses to March or April, CNBC Report, referencing internal documents. The company usually distributes year-end bonuses in January, but employees only received 80% of the total bonuses this month.
Unlike other tech giants, Google also recently made changes to its performance system, but has managed to avoid layoffs until now.Peer Amazon announces plans to cut about 18,000 jobs, Microsoft Say On Wednesday it will lay off 10,000 workers.
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In the memo, Pichai said the company was overhiring. “Over the past two years, we have seen periods of dramatic growth. To match and drive that growth, we have employed economic realities that differ from those we face today,” he wrote.
“As a nearly 25-year-old company, we’re bound to go through tough economic cycles,” he added.
Fired Google employees will receive quite generous benefits: The memo said the company will pay employees within a 60-day notice period and provide severance pay equivalent to 16 weeks of employees’ wages. They receive an additional two weeks of severance pay for each year they work with the company.
Google will also provide “six months of health care, job placement services and immigration support” to those affected, it noted.
“While this transition will not be easy, we will support our employees in finding their next opportunity,” Pichai said. He concluded the letter by letting employees know they can work from home today.
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