Google to lay off 12,000 workers, a sign of troubled times for the tech industry

Alphabet, the US company that runs Google related to search and online technology, has announced the layoff of 12,000 workers. This will have an impact on recruiting as well as engineering and product teams. The company said these layoffs are being made globally and will start with staff in the Americas.

The Reuters report indicates that Sundar Pichai, Alphabet’s chief executive, has provided this information in a memo to staff. “I think we have a great opportunity ahead. The value of our products and services and our early investments in AI will position us strongly,” he added. The company defers the payment of a part of the Christmas bonus to its staff. Alphabet says this is being done as part of a transition to a new performance management system for workers. The company will pay an 80 percent up-front bonus to eligible workers, with the remainder delivered later.

In recent months, due to the uncertain economic situation, many technology companies have laid off. These include Facebook-run Meta, Amazon, microblogging site Twitter, and Chinese smartphone maker Xiaomi. Recently, the global software company Microsoft had announced the dismissal of some 10,000 workers. Microsoft is losing out on cutting costs for customers associated with cloud computing. The company is under pressure to maintain the growth rate of its Azure cloud unit. For the past few quarters, the personal computer market has been hit by the recession and this has affected sales of Microsoft devices and Windows. Microsoft will announce the results of the last quarter on January 24.

The company had around 221,000 workers at the end of the June quarter of last year. Of these, around 1,22,000 were in the US and the rest in other countries. The company’s decision to lay off indicates that staff cuts may continue in the technology sector. Microsoft CEO Satya Nadella recently warned of the challenges for the tech sector for two years. He said that Microsoft will also face challenges and that technology companies must become efficient.

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