Google parent Alphabet has announced it will cut 12,000 jobs or around 6% of its global workforce, becoming the latest tech giant to announce deep layoffs in response the economic slowdown and following rapid hiring in recent years.
Alphabet CEO Sundar Pichai said in an email to staff that redundancies would be made globally and across the entire company. Google employs around 7,000 people in Ireland, meaning there could be some 420 jobs losses here.
The group announced a hiring freeze last summer but soon resumed recruitment for its cloud business.
Alphabet reported having close to 187,000 employees in September, an increase of around 24% or more than 26,000 people year-on-year, and its headcount has grown by approximately 20% per year on average over the past five years.
Pichai said he took "full responsibility for the decisions that led us here," adding that: "These are important moments to sharpen our focus, re-engineer our cost base, and direct our talent and capital to our highest priorities."
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He continued: "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 Alphabet would pay affected employees at least 16 weeks of severance and six months worth of health benefits in the US, while laid off staff in other regions would receive packages based on local laws and practices.
He added that bonuses would not be affected. Alphabet has already emailed affected employees in the US, but the process will take longer in other countries due to local employment laws and practices.
Despite the increase in staff numbers, net income at Alphabet declined by around $6bn year-on-year in its third quarter, from $18.9bn to $13.9bn, while annual revenue growth slowed to 6% from 41% a year earlier.
The group has come under pressure from investors to curb spending and reduce losses from speculative bets on innovative technologies, which grew from $182m to $209m year-on-year in Q3.
The announcement comes days after Microsoft said it would cut around 10,000 jobs and shortly after Amazon decided to lay off around 18,000 workers.
Meta, Twitter, Salesforce, Intercom, and Stripe have also announced sweeping cuts affecting staff in Ireland and around the world in the past few months, generally citing the downturn and overhiring during the pandemic.
Photo: A view of Google logo on a Google building GRCQ1 in Dublin's Grand Canal area. On Thursday, 10 June 2021, in Dublin, Ireland. (Pic: Getty Images/Artur Widak/NurPhoto)
