Exclusive: Google parent company to lay off 12,000 workers in latest blow to tech sector

Jan 20 (Reuters) – Alphabet Inc (GOOGL.O), Google’s parent company, is cutting around 12,000 jobs, or 6% of its workforce, the company said on Friday, in the latest cuts aimed at shaking up the tech sector.

Sundar Pichai, Alphabet’s CEO, said in a memo shared with Reuters that the company had rapidly increased its workforce in recent years “for a different economic reality than we face today.”

“I take full responsibility for the decisions that got us here,” he said.

The cuts come days after rival Microsoft Corp announced it would lay off 10,000 workers.

Alphabet’s job losses affect teams across the company, including recruiting and some corporate functions, as well as some engineering and product teams.

The layoffs are global and have an immediate impact on American personnel.

Alphabet has already emailed affected employees, the memo says, while the process will take longer in other countries due to local employment laws and practices.

The news comes during a time of economic uncertainty and technological promise, during which Google and Microsoft have invested in a burgeoning area of ​​software known as generative artificial intelligence.

“I am confident of the tremendous opportunity ahead of us through the strength of our mission, the value of our products and services, and our early investments in AI,” Pichai said in the note.

Reuters was the first to report the news.

Reporting by Jeffrey Dustin in Davos, Switzerland; Editing by Elaine Hardcastle and Alexander Smith

Our standards: The Thomson Reuters Trust Principles.

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