DLNews Biz:

Alphabet, the parent company of Google, announced today that it would cut 12,000 jobs. These layoffs are expected to affect approximately 6 percent of its global workforce. The reductions will come from a review of its people and priorities.

• More than 41,000 people are already set to lose their jobs based on some of the biggest cuts announced this year.

In an email to employees, Alphabet CEO Sundar Pichai explained that the company has had to make some tough choices. He said the tech giant is facing competition from other companies and has had to change its strategies. But he also cited the changing economic reality for the cuts.

As part of its severance package, Alphabet will offer health care and immigration support for affected US employees. In addition, workers who are laid off will be eligible for 16 weeks of severance pay and paid vacations and bonuses. Depending on local laws, compensation for workers overseas will vary.

In addition, the company will offer additional support services such as job placement, immigration support, and medical and dental care. It has also committed to paying all outstanding 2022 bonuses and offering employees new vacation time.

While Google's advertising business remains its most important source of revenue, the company is struggling to sell ads. Many companies are buying fewer ads on YouTube and Google's search engines. This has dragged down the bottom line, and Pichai said he would make changes to curb expenses.

According to the company's earnings report released in October, Alphabet's profit fell 27 percent. That comes from a disappointing third-quarter performance; analysts expect net income to drop by 25 percent this year.

 

Despite its recent moves, Alphabet is still one of the largest technology firms in the world, with nearly 187,000 employees. Even so, the firm faces pressure from consumers and businesses cutting budgets. And it is under attack from competitors, notably Microsoft.

Alphabet is the latest in a wave of tech firms to announce massive job cuts. Over the past year, Alphabet's stock has fallen by more than 30 percent. The firm's shares have tracked the downturn in the broader tech industry, which has seen a 24 percent slump.

Alphabet's cloud computing unit continues to trail rival Amazon, but it is trying to develop a second sales line. Last quarter, Alphabet's cloud division brought in six billion dollars, but it remains behind the market leader.

Alphabet's layoffs will affect roles and responsibilities in product areas, engineering, and geographies. Employees will be allowed to attend a town hall meeting on Monday. They will be offered immigration support, as well as the chance to learn more about the company's plans for the future.

Alphabet's recent announcement follows a series of cost-cutting moves over the past few months. In addition, several companies, including Microsoft, Facebook, and Twitter, have announced job cuts in the last week. With the tech sector already bracing for an economic downturn, these announcements only heighten concerns about the industry's survival.

Although Google is no stranger to downsizing, its recent announcement is unprecedented. During the digital boom, it added tens of thousands of employees, but now it's having to make some tough choices as the economy heads into a recession.