Alphabet Inc, the parent company of Google, has announced that it will be cutting 6% of its workforce, which amounts to 12,000 jobs. The CEO of Alphabet, Sundar Pichai, stated in a memo to employees that the company had grown its workforce considerably in recent years, however, the current economic situation is now different than what was expected.
“I take full responsibility for the decisions that led us here,” he said.
This decision comes shortly after Microsoft announced plans to lay off 10,000 employees. The affected teams at Alphabet include recruiting, corporate functions, engineering, and product teams. The layoffs will affect staff globally, including in the United States.
A memo stated that Alphabet has already informed the employees that will be impacted by the changes, and that the process will be more time-consuming in other countries as it needs to follow local employment laws and regulations. This announcement comes at a time when there is both economic uncertainty and advancements in technology, with companies such as Google and Microsoft investing in the growing field of generative artificial intelligence.
“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,” Alphabet Inc CEO Pichai said in the note.