Pichai job cuts come at worst time

by Sirisha November 24, 2022

Google’s layoffs come after a hedge manager asked the company to cut staff

Post-pandemic recovery, inflation, fluctuating markets and fear of an impending economic recession, the few reasons responsible for big tech layoffs may continue to exist next year as well. As Google, an “employee-friendly” company that typically shows a reluctance to mass layoffs, has joined the brigade, it makes many think if Google’s layoffs came at the worst time. Google’s ad growth fell to 6% in the quarter, the weakest since 2013 except once during the pandemic. Thanks to Cryptowinter which has the worst to see. The struggling crypto industry has largely retreated from internet advertising investments. It could continue to have a spell on its earnings since Google recently partnered with Coinbase whose share price is down 70% this year!!

According to reports, Google plans to lay off around 6% of its “low performing” employees, which will amount to 10,000 people. According to the Guardian, the move comes after top speculative investor Sir Christopher Hohn wrote to Google that he is overpaying some of its employees, pushing the company into revenue losses and so it would have to cut its workforce in line. to big tech companies like Facebook, Meta, Amazon and Microsoft. He has been a significant investor in the company since 2017, holding a stake valued at $6 billion. Alphabet, which had 1,87,000 employees at the end of the third quarter, has doubled its workforce since 2017, with annual growth of 20%. Hohn said, “Our conversations with former Alphabet executives suggest the business could be run more efficiently with significantly fewer employees.” It’s a known fact that Google resorted to employee hoarding during the pandemic to end up with a workforce three times larger than what would usually be needed.

The worst fear is that the layoffs will trickle down to lower-tier companies as well. Job cuts at Google have resulted in the layoff of about half of the employees at the company’s more than 100-employee startup, Area120. While other start-ups and mid-tier companies are also being affected by the hubris of venture capital-induced hiring, consider this scenario against what the CEO of Amazon said in a press release. press as part of the third quarter results. He said: “There is obviously a lot going on in the macro environment, and we will balance our investments to be more streamlined without jeopardizing our key long-term strategic bets.” According to a Live Mint report, dated October 5, 2022, the IT industry will cut campus and entry-level hiring by 20% for the 2023-2024 fiscal year. It involves re-hires or cross-company hires or lateral hires, that too at this scale, will be a rare phenomenon to see, a worst-case scenario when inflation is raging, there is an economic crisis looming and, more importantly, that companies are in a group think inspiring other companies to look through the leader’s lens to assess economic conditions.

Even after the pandemic, in an effort to increase footfall in its offices, it hired more than 10,000 employees. According to Thinkum Alternative Data, Aphabet’s job openings increased from around 2,770 in January 2021 to a peak of around 15,800 on April 27.e2022. The hiring machine, after inspiring many hopes in young people for the maximum number of jobs it has created during the pandemic, will have to wait for another economic boom even to reach a small piece of this cake when there is has clear signals that she is losing weight and ending the corporate culture of abundance

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