Alphabet, parent company of Google, will cut about 12,000 jobs, or 6% of its workforce, according to an announcement made on Friday (20).
The layoffs are the latest among a series of others in the technology sector. Last Wednesday, Microsoft announced 10,000 layoffs.
The cuts will affect functions across product areas and regions, company CEO Sundar Pichai said in an email to employees posted on the company’s website.
Affected US employees will remain on the company’s payroll for 60 days and receive at least 16 weeks of severance pay, in addition to other benefits.
Alphabet has increased its workforce by more than 50,000 employees over the past two years as rising demand for its services during the pandemic has boosted profits.
But in recent quarters, the company’s core digital ad business has slowed as the economic downturn and recession fears have caused advertisers to reduce their spending.
“Over the past two years, we have seen periods of dramatic growth,” Pichai said in the email. “To accompany and feed this growth, we see an economic reality different from the one we face today.”
Source: CNN Brasil
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