21 Jan 2023
How Google Announced 12,000 Employees Layoff
Sundar Pachai, CEO of Alphabet which is a parent company of Google, has recently announced 12,000 employee layoffs. The company stated that the layoffs were part of a restructuring effort aimed at streamlining operations and shifting resources to growth areas such as cloud computing and artificial intelligence.
The layoffs come as a surprise to many, as Google has been one of the few technology companies that have been relatively immune to the economic impact of the COVID-19 pandemic. However, the company has seen a shift in priorities and needs to adapt to the changing business landscape.
The affected employees are primarily from the company's sales and marketing divisions, which have been hit hard by the shift to remote work and the reduction in face-to-face interactions with clients. Google stated that it will continue to invest in these areas, but will be doing so in a more streamlined and efficient manner.
The move has been met with mixed reactions from both employees and industry analysts. Some have praised the company for being proactive in addressing the changes in its business, while others have criticized the decision to lay off employees during a time of economic uncertainty.
The employees have been given hope of relief as they are promised to receive payment for the complete notice period (a minimum of 60 days) as well as Sundar Pichai has offered them a severance package from the company starting at 16 weeks' salary plus two weeks for every additional year at Google. Moreover, the Layoff employees will be entitled to 16 weeks of Google Stock Unit (GSU) vesting. It is a restricted stock unit certificate that Google issues where each certificate equals one share of Google.
Google is not the only technology company to have announced layoffs. Approximately, more than 1.5 lakh tech company employees faced job cuts in 2022, according to tracking site layoffs.fyi. Recently, other major players such as Twitter and Oracle also announced job cuts in response to the changing business environment.
Overall, the layoffs at Google are a reminder of the rapidly changing nature of the technology industry, and the need for companies to adapt to new trends and market conditions to stay competitive. While it is never easy to part ways with dedicated employees, companies need to make strategic decisions that will ensure their long-term success.
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