Google’s parent company announces massive job cuts

Google’s parent company Alphabet announced on Friday it would eliminate 12,000 jobs worldwide, more than 6% of its workforce, after years of robust growth and hiring.

Alphabet’s CEO Sundar Pichai explained the decision, saying that the company had rapidly expanded headcount in recent years "for a different economic reality than the one we face today." In an email to employees he wrote that he takes "full responsibility for the decisions that led us here."

Alphabet became the latest tech giant to announce massive layoffs amid rising concerns of a global slowdown. Earlier this week Microsoft said it would cut 10,000 jobs following similar moves by other big tech companies Amazon, Meta Platforms and Twitter.

The job cuts will affect employees across the company including recruiting and some corporate positions, as well as engineering and products teams, and will have an immediate impact on US staff, Reuters reported, citing the company’s memo.

Alphabet’s decision to slash its workforce follows pressure from investors requiring a more aggressive strategy to cut spending.

“The company has too many employees and the cost per employee is too high,” TCI Managing Director Chris Hohn said, noting that Alphabet’s headcount had swelled 20% per year since 2017.

Earlier in January, Verily, a biotech unit of Alphabet, said it was slashing 15% of its staff.

For more stories on economy & finance visit RT's business section