Google Parent Alphabet says cut 12,000 jobs in latest tech shock

Alphabet is cutting 12,000 jobs, its chief executive said in a memo shared with Reuters.

The cuts are the latest to shake up the tech sector and come days after rival Microsoft announced it would lay off 10,000 workers.

The job losses affect teams across the company, including recruiting and some corporate functions, as well as some engineering and product teams.

The layoffs are global and have an immediate impact on American staff, Google said.

The news comes during a time of economic uncertainty as well as technological promise, during which Google and Microsoft have invested in a nascent field of software known as generative artificial intelligence.

Sundar Pichai, CEO of Alphabet, said in the note, “I am confident in the tremendous opportunity that lies ahead of us through the strength of our mission, the value of our products and services and our first investments in AI.”

Reuters was the first to report the news.

Earlier this week, Microsoft said it would cut 10,000 jobs and take a $1.2 billion charge from its profits, as its cloud computing customers reevaluate their spending and the company prepares for a possible recession.

The layoffs add to the tens of thousands announced in recent months in the tech sector, which has demoted after a strong period of growth during the pandemic.

The news comes just as the software maker is poised to increase spending on generative artificial intelligence that the industry sees as the new bright spot.

Customers wanted to “optimize their digital spend to do more with less” and “be cautious as some parts of the world are in recession and others are anticipating one,” he said. “At the same time, the next great wave of computing is being born with advances in AI.”

Nadella said the layoffs, affecting less than 5% of Microsoft’s workforce, would end by the end of March, with notifications beginning Wednesday.

© Thomson Reuters 2023

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