Economic downturn causing more big tech layoffs
The slowing economy has over just a few weeks led to big tech companies announcing layoffs of 40 000 staffers with Alphabet, owner of Google and YouTube, being the most recent saying that 12 000 staffers globally will have to leave.
Big tech benefitted when people were locked up during the pandemic wanting more tech services and devices. When the most of the world get out of the lockdown and economy slows down with increased inflation and interest rates, big tech companies find the have too many staffers.
Just days ago, Microsoft said 10 000 will be laid off and weeks earlier Amazon said the same about 18 000 staffers. In November last year, Meta, owner of Facebook and Instagram, said 11 000 have to go.
“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”, Alphabet and Google CEO, Sundar Pichai, says in a message to staff adding that the workforce will be reduced with 12 000 persons globally.
“I am confident about the huge opportunity in front of us thanks to the strength of our mission, the value of our products and services, and our early investments in AI. To fully capture it, we’ll need to make tough choices. 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.”
“As an almost 25-year-old company, we’re bound to go through difficult economic cycles. These are important moments to sharpen our focus, reengineer our cost base, and direct our talent and capital to our highest priorities.”
“Being constrained in some areas allows us to bet big on others. Pivoting the company to be AI-first years ago led to groundbreaking advances across our businesses and the whole industry.”
Thanks to those early investments, Google’s products are better than ever. And we’re getting ready to share some entirely new experiences for users, developers and businesses, too. We have a substantial opportunity in front of us with AI across our products and are prepared to approach it boldly and responsibly.”
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