Google Claims 12,000 Job Cuts and Delays Bonuses

• Alphabet’s job losses affect teams across the company including recruiting and some corporate.
• The news comes only days after Microsoft announced a 10,000-person layoff.
• CEO informed employees in a memo that the company had assessed its resources.

Google parent company, Alphabet Inc, said Friday that it is cutting 12,000 employees, or 6% of its staff, as Silicon Valley suffers from previous layoffs and confronts a difficult outlook.

Alphabet, whose stock jumped 3% in premarket trade, is making the changes as the business faces a challenge to its long-held position atop the technology sector.

For years, Alphabet has drawn elite talent to construct Google, YouTube, and other products that reach billions of people, but it is also competing with Microsoft Corp in generative artificial intelligence, a new field.

Alphabet’s layoffs came only days after Microsoft announced a 10,000-person layoff.

Alphabet CEO Sundar Pichai informed employees in a memo that the company had assessed its products, people, and priorities, resulting in job losses across geographies and technologies. It had aggressively expanded for better times but now confronted “a different economic reality”.

“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,” Pichai stated.

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The job reductions at Alphabet touch teams across the organisation, including recruiting, some corporate operations, and some engineering and product teams.

The cutbacks are global in scope and have a direct impact on US employees.

According to the message, Alphabet has already emailed concerned employees, but the procedure would take longer in other countries due to local employment rules and norms.

The announcement comes at a time of economic instability as well as technological promise.

“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,” Pichai said.