The looming inflation, economic recession and other uncertainties are being addressed by many technology companies across a variety of segments through forms of restructuring. The most common of these, unfortunately, is the reduction of the existing workforce. The goal is clear – to minimize the impact of current or anticipated economic problems as part of cost-saving measures.
Amazon, Microsoft and now Google
More and more multinational companies are resorting to this step. Among the better-known ones are Amazon, Meta Platforms (Facebook, WhatsApp, Instagram), Microsoft and, more recently, the internet advertising tycoon Google.
The popular site 9To5Google reports that Sundar Pichai, CEO of Alphabet, announced in a recent internal memorandum a draconian measure by top management to minimize potential damage. According to the server, which cites Reuters, approximately 12,000 employees will lose their jobs.
12,000 people will end up on the pavement
The report goes on to say that these people have already been contacted by recruiters to start looking for new jobs. At the same time, they are being paid three months’ salary along with a two-week bonus for each year of service. Of course, they are also entitled to six months’ health care, which is now paid for by their former employer.
“I am convinced of the huge opportunity that lies ahead of us, thanks to the strength of our commitment, the importance of our products or services and the large investment in artificial intelligence. I am confident that we will get through this difficult period together.”
The consequence of a difficult period
Pichai himself explains the decision as a consequence of the “difficult period” the company is currently in. In the same breath, however, he added that it is a state from which Google will come away much stronger than ever before, and also highlighted some products along with the huge investment in AI.