Alphabet (NASDAQ:GOOGL) Inc., parent company of Google, has announced layoffs within its global recruiting team on Wednesday, marking the first such move by a "Big Tech" company this quarter. The decision comes as part of the tech giant's ongoing strategy to slow hiring.
While a small number of employees will be affected by the layoffs, the majority of the team will remain in place to support crucial hiring needs. Alphabet has also committed to assisting affected employees in finding new roles both within and outside the organization.
Earlier this year, Alphabet, along with other tech giants such as Meta (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Amazon (NASDAQ:AMZN), underwent significant downsizing in response to a slowing economy that brought an abrupt end to their pandemic-driven hiring sprees.
In January 2023, Alphabet reduced its workforce by approximately 6%, equating to around 12,000 positions. This move followed a period of rapid growth for the company, which added over 50,000 employees starting in 2021 due to surging demand for its services during the pandemic. However, fears of an economic downturn led advertisers to cut back their spending last year, slowing the growth of Alphabet's core digital ad business.
According to filings with the Securities and Exchange Commission, Alphabet had 190,234 employees at the end of 2022. By the end of June 2023, this number had dropped to 181,798.
Alphabet's President and Chief Investment Officer Ruth Porat stated in July that the company is focused on reorganizing expenses to make room for investments that yield the highest returns.
The layoffs have sparked reactions from affected employees on LinkedIn, many of whom expressed disappointment at their dream jobs coming to an end. However, they also acknowledged the need for Alphabet Inc. to mitigate losses and keep the business running effectively amidst economic challenges.
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