Google is the latest in the list of Big Tech companies that have announced a mass layoff over the last few months. Read on to learn more about the layoff, the possible reasons, how the layoff process may occur, and the reactions to the job cuts.
Google has announced that it is laying off 12,000 employees worldwide, making it the latest in the list of tech giants like MetaOpens a new window , Microsoft, CISCO, and Twitter to do so over the last few months. Google’s CEO, Sundar Pichai, informed his employees about the layoffs on Friday through an email.
Pichai Takes Full Responsibility for the Harsh Decision
Informing the company’s employees about the job cuts, Pichai said that layoffs came after Google’s “rigorous review†across various functions and product areas. The roles being removed are across Alphabet, functions, product areas, levels and regions. Pichai also informed the employees that he took full responsibility for the decisions the company took that led to this situation.
He wrote in the letterOpens a new window , “… I’m deeply sorry for that. The fact that these changes will impact the lives of Googlers weighs heavily on me, and I take full responsibility for the decisions that led us here.†Pichai further wrote, “Over the past two years we’ve seen periods of dramatic growth. To match and fuel that growth, we hired for a different economic reality than the one we face today.â€
See more: HP to Lay Off Up to 6,000 Employees as PC Demand Tapers Off
How the Layoff Process Will Take Place
The company’s job cuts have already begun in the U.S. and will be followed in other countries in the coming days. The email said that the affected employees in the U.S. had already received a separate email. The process may be longer in other countries due to local practices and laws.Â
Pichai said that the affected employees would be paid severance and other benefits. In the U.S., the affected employees will get the complete notification period, a severance package beginning at 16 weeks’ salary and two weeks for every extra year at Google. The impacted employees will also receive 2022 bonuses, remaining vacation time, and six months of healthcare and job placement services, among other benefits.Â
The affected employees in other countries will receive support according to local practices.
Possible Reasons for the Layoffs
According to a CNBC reportOpens a new window , Google revamped its performance review process last year and introduced a new system called GRAD. According to this system, an estimated 6% of full-time employees fell under the low-ranking category, putting them at a high risk of corrective action. Further, during an all-hands meeting in December, Google hinted that more people might be at risk of low ratings.Â
The layoffs at Google may be partly due to this new performance review system. Google’s announcement also comes at a time when the world expects an economic downturn this year. Less than a week ago, Microsoft, too, announcedOpens a new window that it would be laying off 10,000 employees worldwide.Â
Pichai and Google Face Backlash
As may be expected, both Pichai and the company have faced backlash from disgruntled employees. For example, Justin Moore, a software engineering manager affected by the layoff, wrote on LinkedInOpens a new window , “So after over 16.5 years at Google, I appear to have been let go via an automated account deactivation at 3 am this morning as one of the lucky 12,000. I don’t have any other information, as I haven’t received any of the other communications on the boilerplate “you’ve been let go†website (which I now also can’t access) said I should receive.â€
The Alphabet Workers Union (AWU) also criticized the decision to let go of 12,000 employees, saying it was unacceptable for a company with a $17 billion profit in the previous quarter.
While Alphabet leadership claims “full responsibility,” that is little comfort for the 12,000 workers who are now without jobs. This is unacceptable behavior for a company that made $17B in profits last quarter alone.
— Alphabet Workers Union (AWU-CWA) (@AlphabetWorkers) January 20, 2023Opens a new window
Google will have a Townhall on Monday to discuss its future steps.Â
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Image source: Shutterstock
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