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Google CEO Sundar Pichai announced earlier this Friday that the company will let go of 12,000 employees. The information was sent via Email to the team.
According to Pichai, the web search and video-sharing giant would give employees in the United States 16 weeks of severance compensation in addition to two weeks for each subsequent year of employment.
Tech companies are currently dealing with a number of difficulties, not the least of which are the recent increases in interest rates and inflation that have decimated technology shares and compelled advertisers to reduce online advertising spending.
The demand for American tech shares has decreased as a result of interest rate increases, particularly from the U.S. Federal Reserve. These businesses have been under increased pressure to make significant personnel reductions as a result of the dark macroeconomic environment.
On Wednesday, Amazon started a new round of layoffs that will effect approximately 18,000 workers. Microsoft made a plan to fire 10,000 employees public on the same day.
Since Elon Musk became the company’s CEO late last year, Twitter engaged in massive layoffs, reducing its workforce by more than half.
Google announced its decision to lay off staff on Friday after CNBC revealed on Wednesday that the company was delaying a chunk of employees’ year-end bonus payouts until March or April rather than January.
Employees used to receive their entire bonus in January in previous years. However, according to the records, Google will issue bonus checks for 80% of qualified full-time employees this month and 20% in March or April.
In a letter to staff, Google referred to the January payout as a “advance.” Due to the “transition” of its employee-evaluation methodology and the new date for future bonuses, Leadership stated that it will just be a one-time change.
The memo from the corporation stated that full incentives would be paid in March beginning in 2023, as CNBC reported.
On February 2, Alphabet is expected to release its fourth quarter earnings. Refinitiv estimates that analysts anticipate sales growth of less than 2% from the prior year, while they anticipate a decline in earnings per share to $1.18 from $1.53. In the most recent year, the stock has decreased 31%.
Independent Writer. Marketing and communications strategist for politicians, artists, public figures & corporate brands for more than 10 years. Contact: @alejandrosbasso (Twitter)
Escritor independiente. Consultor en marketing y comunicaciones de políticos, artistas, figuras públicas y marcas por más de 10 años. Contacto: @alejandrosbasso (Twitter)