Google parent company Alphabet announced layoffs on Friday of roughly 12,000 workers, totalling 6 percent of its global workforce.
Alphabet Chief Executive Sundar Pichai wrote in a memo to staff sent to Reuters it had increased its staff count over the last few years “for a different economic reality than the one we face today.”
Google CEO Sundar Pichai’s memo to staff:$GOOG $GOOGL pic.twitter.com/25Kb1V6nr3
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He said: “I take full responsibility for the decisions that led us here.
Reuters reported that the job cuts would hit the company’s teams for recruiting, corporate, engineering, and products. Workers in the United States will be the first affected.
The memo added the tech giant had contacted its employees and job losses would take effect later for other countries due to differences in employment law.
The news comes just days after Microsoft and Amazon announced cutbacks of roughly 10,000 employees. Meta Platforms also announced in early November it would sack 11,000 employees due to poor revenues and the economic downturn.
The news comes after numerous firms, including Microsoft, Apple, Meta Platforms, Snap, Alphabet, and many others, have faced similar layoffs due to the looming economic recession.
Sundar Pichai Memo to Staff
Numerous media have reposted the Pichai memo to its workforce, where he explains his reasoning for the layoffs at Alphabet.
Referring to his staff as ‘Googlers,’ Pichai stated,
“This will mean saying goodbye to some incredibly talented people we worked hard to hire and have loved working with. 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”
According to the CEO, the company would also conduct a “rigorous review” across its products and services to “ensure that our people and roles are aligned with our highest priorities as a company.”
He added: “To the Googlers who are leaving us: Thank you for working so hard to help people and businesses everywhere. Your contributions have been invaluable and we are grateful for them.”
Employee Terms and Conditions
The memo outlined the terms and conditions of employee severance, which include:
- Paying employees for the full notification period, or a minimum of 60 days
- Severance packages at 16 weeks’ salary and two weeks for every additional year worked at Google
- Bonuses for 2022 and remaining holiday time
- Six months of healthcare along with job placement and immigration support for affected staff
- Support for employees outside the US “in line with local practices”
He continued that work with Google was a continued effort of the “healthy disregard for the impossible” as part of its core culture.
Concluding, he stated: “When I look around Google today, I see that same spirit and energy driving our efforts. That’s why I remain optimistic about our ability to deliver on our mission, even on our toughest days. Today is certainly one of them.”
Google Global Layoffs and XR
It is uncertain how the Alphabet layoffs will affect its operations in extended reality (XR). Currently, the enterprise hosts products in augmented reality (AR) via its ARCore development platform.
The company recently began beta testing for its Google Glass follow-up across the US in July last year. Engineers trialled the AR smart glasses at numerous places to test environmental restrictions and functionality.
The current job losses may affect its second Google Glass iteration as it focuses on core products across its business such as Google Lens, Immersive Stream, and Google Maps’ Live View.
Similar issues took place at Meta Platforms and Microsoft, shelving their respective Project Nazare and Microsoft AR smart glasses projects. This came after the company slashed thousands of jobs due to the economic and tech recessions.
Apple has also pushed back its mixed reality (MR) headset numerous times due to problems developmental issues with hardware and software.
This also forced the Cupertino-based firm to postpone the launch until spring this year, ahead of the company’s Worldwide Developers Conference (WWDC) 2023 in June. The firm also delayed its AR smart glasses product “indefinitely” due to its restructuring and shift in innovation priorities.
XR Today analysis finds that the company likely delayed the headset due to current economic conditions. It also noted additional concerns over interoperability and product refinement ahead of the launch to avoid larger setbacks in the near future.
