Alphabet Inc, Google's parent, is eliminating 12,000 jobs, its chief executive said in a staff memo on Friday. The cuts mark the latest to shake the technology sector and come days after rival Microsoft Corp said it would lay off 10,000 workers.
Sundar Pichai, Alphabet's CEO, said in the note, "I am confident about the huge opportunity in front of us thanks to the strength of our mission, the value of our products and services, and our early investments in AI."
The job losses affect teams across the company including recruiting and some corporate functions, as well as some engineering and products teams.
The layoffs are global and impact US staff immediately, Google said.
The news comes during a period of economic uncertainty as well as technological promise, in which Google and Microsoft have been investing in a fledgling area of software known as generative artificial intelligence.
Pichai told employees in an email on Friday that he takes “full responsibility for the decisions that led us here".
"Googlers, I have some difficult news to share. We’ve decided to reduce our workforce by approximately 12,000 roles. We’ve already sent a separate email to employees in the US who are affected. This will mean saying goodbye to some incredibly talented people we worked hard to hire and have loved working with. I’m deeply sorry for that. I take full responsibility for the decisions that led us here. Over the past two years we’ve seen periods of dramatic growth. To match and fuel that growth, we hired for a different economic reality than the one we face today," said Pichai in his letter to his employees.
“These are important moments to sharpen our focus, reengineer our cost base, and direct our talent and capital to our highest priorities,” Pichai wrote in the email.
He said the company has a “substantial opportunity in front of us” with artificial intelligence, a key investment area where Google is facing a surge in recent competition.
In October, the company reported earnings and revenue that missed analyst expectations. Profit declined 27% to $13.9 billion compared to the prior year.
With inputs from agencies
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