Google is laying off 12,000 employees, becoming the latest tech company to trim staff as the economic boom the industry rode during the COVID-19 pandemic.
In an email to employees, CEO Sundar Pichai stated that: “The fact that these changes will have an impact on the lives of Googlers weighs heavily on me, and I take full responsibility for the decisions that brought us here.”
Pichai said the company hired for a “period of dramatic growth” over the past two years, but it was a “different economic reality than the reality we face today.” He said the layoffs reflect a ‘rigorous review’ that Google has undertaken of product areas and functions.
In the US, Google will pay employees during the full notification period (minimum 60 days), 16 weeks’ pay plus a two-week severance package for each additional year at Google, and 6 months of health care, job placement services , and immigration assistance for those affected.
“In other countries, the process will take longer due to local laws and practices,” he said.
Read full email:
“Googlers,
I have some tough news to share. We have taken the decision to reduce our workforce by approximately 12,000 roles. We have already sent a separate email to affected employees in the US. In other countries, the process will take longer due to local laws and practices.
This will mean saying goodbye to some incredibly talented people we worked hard to hire and loved working with. I am deeply sorry for this. The fact that these changes will affect the lives of Googlers weighs heavily on me, and I take full responsibility for the decisions that got us here.
In the last two years we have seen a period of dramatic growth. To match and fuel that growth, we hired for a different economic reality than the one we face today.
I’m confident of the huge opportunity ahead of us thanks to the strength of our mission, the value of our products and services, and our early investments in AI. To fully achieve this, we have to make tough choices. Therefore, we have conducted a rigorous review across product areas and functions to ensure that our people and roles are aligned with our top priorities as a company. The roles we are eliminating reflect the results of that review. They cut across alphabets, product sectors, functions, levels and regions.
To the Googlers who dropped us: Thank you for working so hard to help people and businesses everywhere. Your contribution has been invaluable and we are grateful to them.
While this transition will not be easy, we are going to support employees as they seek their next opportunity.
In America:
We will pay the employees during the full notification period (minimum 60 days).
-We will also offer a severance package starting at two weeks with 16 weeks of pay for each additional year at Google, and accelerate vesting of at least 16 weeks of GSU.
We will pay the 2022 bonus and the rest of the vacation time.
-We will offer 6 months of healthcare, job placement services and immigration assistance to those affected.
– Outside the US, we will support employees in accordance with local practices.
As a nearly 25 year old company, we are bound to go through tough economic cycles. These are critical moments to sharpen our focus, realign our cost base, and direct our talent and capital toward our highest priorities.
Being constrained in some areas allows us to bet big on others. Inspiring the company to be AI-first years ago led to unprecedented progress across our businesses and the industry as a whole.
Thanks to those early investments, Google’s products are better than ever. And we’re getting ready to share some brand new experiences for users, developers, and businesses, too. We have ample opportunities with AI in our products and we are ready to embrace it boldly and responsibly.
All this work is a continuation of the “healthy disregard for the impossible” that has been central to our culture since the beginning. When I look around Google today, I see the same spirit and energy driving our efforts. That’s why I’m optimistic about our ability to accomplish our mission even on our toughest days. Today is definitely one of them.
I’m sure you have many questions about how we move forward. We will organize a town hall on Monday. See your calendar for details. Until then, please take care of yourself as you digest this difficult news. As part of that, if you are just starting your working day, please don’t hesitate to work from home today.
Beautiful,
(With inputs from AP and PTI)
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