Google Announces 12,000 Job Cuts Amid Economic Downturn
Google's parent company Alphabet lays off 12,000 employees as rising interest rates and inflation pressure the tech industry. CEO Sundar Pichai confirms immediate cuts in the U.S. with extended severance packages for affected workers.
Google's parent company Alphabet lays off 12,000 employees as the tech giant joins a growing list of companies cutting jobs amid fears of an oncoming recession. CEO Sundar Pichai confirms that the layoffs begin immediately in the United States, while the process takes longer in other countries due to local laws and practices.
The company offers U.S.-based employees 16 weeks of severance pay plus two additional weeks for every year worked at Google. Despite the massive job cuts, Google shares close up more than 5% after the announcement, reflecting investor approval of the cost-reduction measures.
This move follows similar recent actions by other major tech companies, with Amazon cutting over 18,000 jobs and Microsoft laying off 10,000 workers. Rising interest rates from the Federal Reserve and inflation force advertisers to reduce online ad spending, creating a gloomy macroeconomic climate that pressures technology companies to make deep workforce cuts.