Google announces 12,000 job cuts globally

Google announced that the company would lay off 12,000 employees worldwide. Google workers in the US who got affected have already received an email, while affected staff elsewhere will be informed soon. In a letter to employees, Google CEO Sundar Pichai shared that the search engine giant has conducted a "rigorous review across all product areas" to ensure current roles are aligned with the company's highest priorities. It's unclear which department is hit hardest by the latest round of layoffs.

Pichai's letter also stresses that the company will ensure a smooth "transition" for affected workers. Google will pay employees for the full notice period (minimum 60 days). He says he would offer a severance package starting at 16 weeks' salary and two weeks for each additional year at Google. Eligible workers will also receive bonuses and health benefits under their contracts. On the other hand, Google workers outside of the US will receive a severance package based on their contracts and local guidelines.

Pichai adds that Google will host a town hall with employees on Monday. His letter reads: "As an almost 25-year-old company, we're bound to go through difficult economic cycles. These are important moments to sharpen our focus, reengineer our cost base, and direct our talent and capital to our highest priorities."

Though the news about the mass layoffs is unfortunate, the development is not entirely surprising. In mid-2022, Google halted hiring, and Pichai even indicated that workers aren't working hard and shouldn't equate fun with money. Pichai had said: "We don't get to choose macroeconomic conditions always."

While Google's CEO has said affected workers will get bonuses, a new report suggests that Google has delayed paying out year-end bonus checks to employees this year. This is unusual for Google employees, as the company typically offers yearly January bonuses.

Like several other tech companies, Google has said it overhired during the surge of the COVID-19 pandemic when the whole world was forced to work from home. Users were spending more time online as a result, and tech companies also anticipated post-pandemic growth. However, following the Russia-Ukraine war and various other macroeconomic conditions, the tech giants began to face the heat.