In a Friday blog post, Google announced that it plans to reduce its workforce by 12,000 roles.
“This will mean saying goodbye to some incredibly talented people we worked hard to hire and have loved working with,” said a message attributed to Sundar Pichai, the CEO of Google and its parent company, Alphabet.
Pichai said he is “deeply sorry” about the “difficult news” and that emails have already been sent to U.S. employees effected by the layoffs. He said that the process may take longer in other countries.
“Over the past two years we’ve seen periods of dramatic growth,” Pichai said. “To match and fuel that growth, we hired for a different economic reality than the one we face today.”
In a press release regarding Alphabet’s third quarter of 2022 financial results, company CFO Ruth Porat said that revenues were $69.1 billion, up 6% compared to the previous year. However, 2022 was marked by high inflation and rising interest rates.
Google isn’t the only company that has decided to lay off workers this month. Microsoft announced Thursday it is reducing its workforce by 10,000 employees, per an SEC filing. This reduction and other actions were “in response to macroeconomic conditions and changing customer priorities,” the filing said.
According to Pichai, Alphabet conducted a “rigorous” review to determine cost cuts. He said the “roles we’re eliminating reflect the outcome of that review,” and are spread across company product areas, functions, levels and regions.
Employees in the U.S. are expected to receive pay during a minimum 60-day notification period, said the CEO. Pichai said a severance package starting at 16 weeks salary plus two weeks for every additional year at Google, that accelerates at least 16 weeks of GSU vesting, will also be offered.
Additionally, employees with eliminated positions are expected to get their 2022 bonuses and remaining vacation time paid.
“We’ll be offering 6 months of healthcare, job placement services, and immigration support for those affected,” said Pichai. “Outside the US, we’ll support employees in line with local practices.”
He also said the company is continuing to work on projects related to AI and that its products are “better than ever.”
Pichai announced a Google town hall will be held this Monday. A webcast regarding the company’s 4th quarter results for 2022 is scheduled for Feb. 2.