Google laid off about 12,000 people in the United States this FridayCEO Sundar Pichai announced in an email to staff on Friday, according to CNBC.
Like other tech companies, Google has been hit by Fed rate hikes that, combined with inflation, have reduced digital ad spending.
“We have decided to reduce our headcount by approximately 12,000 positions,” Pichai wrote. “This will mean saying goodbye to some incredibly talented people we worked hard to hire and loved working with. I am deeply sorry… I take full responsibility for the decisions that led us here,” he added.
The company is also delaying the payment of 20 percent of employee bonuses until March or April, it reported. CNBCciting internal documents.
Why is Google cutting back?
Unlike other tech giants, Google had so far managed to avoid layoffs.
In the memo, Pichai said the company was overhiring.
“Over the past two years, we have seen periods of dramatic growth. To match and fuel that growth, we contracted a different economic reality than what we face today,” he wrote.
The Associated Press noted that Google’s ad revenue was down “significantly” from the earnings it reported in late October.
Google employees who are laid off will receive fairly generous benefits: the company will pay employees within a 60-day notice period and provide severance pay equal to 16 weeks’ salary.
They will also be paid an additional two weeks for every year they have worked with Google. In the same way, it will provide “six months of medical care, job placement services and immigration support.”
“While this transition will not be easy, we will help our employees find their next opportunity,” Pichai said. He ended the notice by informing employees that today they can work from home.
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