Google is following in the footsteps of Amazon, Microsoft, and Meta by conducting a significant round of layoffs, with plans to release 6% of its global workforce, which equates to approximately 12,000 employees.
While this layoff is not disproportionately larger than rival companies, many people will still be affected. For comparison, Amazon laid off 6% of its workforce, which amounted to 18,000 people. Microsoft cut off 5% of its employees, which made up 10,000 jobs, and Meta released 13% of its workers, 11,000.
Technology and other industries are preparing for an economic downturn and looking for ways to reduce costs, with layoffs being one of the grim options. Twitter also laid off thousands of its employees soon after Elon Musk took charge of the company.
In an official statement, Sundar Pichai, CEO of Google, emphasized the importance for the remaining staff to increase their focus and work output with a sense of urgency.
He also announced that the company plans to increase its efforts in developing AI-related services to compete with rival companies working on similar projects. Despite Google’s revenue reaching $69 billion this year, profits have decreased to $13.9 billion. In light of the expected economic challenges in 2023, the company is taking proactive measures to address the situation.
Pichai has allowed employees to work from home as they process the company’s announcement of layoffs. He said:
“Please take good care of yourselves as you absorb this difficult news. As part of that, if you are just starting your work day, please feel free to work from home today. The fact that these changes will impact the lives of Googlers weighs heavily on me, and I take full responsibility for the decisions that led us here.”