Alphabet, the parent holding company of Google, has stated that it would be laying off around 6% of its staff worldwide.
The story followed a similar path to that of other businesses that have reduced in size in recent times, noting that the company had "hired for a various economic reality" than what it is up against today in an open letter printed by Google & Alphabet CEO Sundar Pichai. The letter was published online.
Simply put, it had increased its staff during the pandemic-driven digital boom times. Still, it is now being forced to reverse direction due to the world's reduced spending due to economic headwinds. Pichai said that the layoffs would affect Google staff.
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The Large-Scale Firings At Big Tech
Apple is the sole one of the big-five U.S. technology titans that have not declared layoffs yet. The announcement implies that four of the five so-called "major tech" corporations have already announced large redundancies in the previous few months. Apple is the only company in this group.
Earlier this week, Microsoft announced that it would be cutting 10,000 jobs, which would affect roughly 5% of its workforce. This decision came after Amazon slashed 18,000 positions, which would affect 1.2% of the company's worldwide headcount. While this was happening, the parent company of Facebook, Meta, announced 11,000 layoffs, which affected 13% of its workers.
Other IT companies, including the business software giant Salesforce, have made substantial layoff announcements. Salesforce stated that it would eliminate 10% of its staff at the turn of the year, affecting more than 7,000 individuals.
It is important to remember that up to this point, Alphabet has not been immune to layoffs or other forms of workforce reduction. Intrinsic's robot software spinoff stated last week that it would be laying off 40 employees, equivalent to 20% of its personnel. At the same time, Verily, which is Verily's subsidiary for life sciences, pared down its workforce by 15%, representing around 240 individuals.
Alphabet’s Severance Pay
What Alphabet is providing its workers in the United States in terms of severance seems fair at first sight. The corporation has said that the packages would "start at" 16 weeks' income, with an extra two weeks for every year employed and that employees will be paid in full for the whole notice period, which is a minimum of sixty days. In addition, it promised to pay any incentives due in 2022 and any unused vacation time, in addition to providing healthcare for six months and extra support services.
Pichai said that the corporation would "assist personnel in accordance with local standards" in countries outside the United States of America.
Pichai was eager to gloss over circumstances positively, noting that wonderful things may arise from tough times, even though layoffs were being carried out at Google.
He wrote that "as a firm over 25 years old, we are destined to go through challenging economic cycles." "At this critical juncture, we need to tighten our focus, reconfigure our cost base, and direct our expertise and money to the most important areas."
Featured image: Alphabet
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