Alphabet, the parent company of Google, said on January 20 that it will eliminate around 12,000 jobs, or 6 percent of its global workforce, CEO Sundar Pichai informed staff in an email.

The layoffs will have a worldwide and company-wide impact, Pichai said, adding that he accepts “all responsibility for the decisions that lead us here.”

Pichai continued, “These are crucial times to sharpen our focus, reengineer our cost structure, and target our talent and capital to our highest priorities.”

The layoffs affect teams across the organisation, including engineering, engineering products, and some business operations.

Google stated that the layoffs are global and will affect US employees immediately.

With the layoffs, Google joins a slew of other major titans that have substantially reduced operations in response to a weakening global economy and increasing inflation. Microsoft, Meta Platforms, Twitter, and Amazon.com all reduced their staffing levels.

Pichai stated, in accordance with the announcement, that the tech giant will “help employees as they seek their next opportunity.

In the United States, Pichai claimed that the company will pay employees for the whole notice period (minimum 60 days).

In addition, Google will offer a severance compensation beginning at 16 weeks salary plus two weeks for each consecutive year of service, and will accelerate at least 16 weeks of GSU vesting.

The company will pay 2022 bonuses and remaining vacation time, as well as provide affected individuals with six months of healthcare, job placement services, and immigration support.

In addition, outside the United States, the search engine giant will help personnel in accordance with local customs.

As part of its transition to a new performance management system, Google is delaying a chunk of its employees’ year-end incentives, it has been reported by Reuters.

A representative for the company told Reuters that eligible employees will receive an 80% incentive in advance and the remaining 20% in subsequent months. The move was announced to employees last year.

Meanwhile, the company announced earnings and revenue in October that fell short of analyst estimates. The profit decreased by 27 percent to $13.9 billion in comparison to the previous year.

At the time, Pichai stated that Google will reduce its expenditures, and CFO Ruth Porat predicted that the number of new employment would decrease by more than half in the fourth quarter compared to the previous period.2