Alphabet (GOOGL.US), the parent holding company of Google, announced that it will lay off 12,000 employees which equals approximately 6% of its workforce.
Narrative of an open letter published by CEO Sundar Pichai is similar to that of other big companies that reduced employment in recent months, noting that the company was "employing in a different economic reality" than the one it faces today.
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Open account Try demo Download mobile app Download mobile appThe news also means that four out of five BIG Techs have announced significant layoffs in the past few months. Apple is the only company from the big five that has not announced any job cuts so far.
Earlier this week, Microsoft announced 10,000 job cuts, affecting nearly 5% of its workforce, following Amazon's decision to cut 18,000 jobs, or 1.2% of its global workforce. Meta announced 11,000 layoffs in November, which translates to 13% of its workforce.
Other major companies also have announced significant layoffs in recent times. Software giant Salesforce, which confirmed job cuts of 10% of its workforce at the turn of the year, equivalent to 7,000 people.
It seems that the worsening macroeconomic environment has prompted companies from the tech sector to take a more cautious approach and focus more on core strengths, after years of trying to diversify revenue and investing in many side-projects.
Alphabet (GOOGL.US) stock rose over 4% following lay-offs news.Source: xStation5This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.