Tech layoffs 2023: Alphabet Inc plugs 12,000 workers

(Reuters) – Google parent company Alphabet Inc said on Friday it was eliminating about 12,000 jobs, or 6% of its workforce, as Silicon Valley grapples with recent layoffs and faces a troubled outlook Is.

Alphabet, whose shares rose 3% in pre-market trading, is taking the cut, as the US company faces threats to its longstanding hold in the technology sector.

Over the years, Alphabet has attracted top talent to build Google, YouTube and other products that reach billions of users, but now it is locked in competition with Microsoft Corp. over what is known as generative artificial intelligence. .

The cuts at Alphabet come days after Microsoft said it would lay off 10,000 employees.

Alphabet CEO Sundar Pichai told employees in a memo that the firm had reviewed its products, people and priorities, leading to job cuts across geographies and technology. It had expanded rapidly for better times but now faced “a different economic reality”.

“The fact that these changes will affect the lives of Googlers weighs heavily on me, and I take full responsibility for the decisions that got us here,” Pichai said.

Alphabet’s job losses affect the company’s teams, including recruiting and some corporate functions, as well as some engineering and product teams.

The layoffs are global and affect US workers immediately.

The memo said Alphabet has already emailed affected employees, while in other countries the process will take longer due to local employment laws and practices.

The news comes during a period of economic uncertainty as well as technological promise.

“I am confident of the enormous opportunity ahead of us, thanks to the strength of our mission, the value of our products and services, and our early investments in AI,” Pichai said.

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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)