Brittany Gates

Reporting video games and tech news from an entrepreneur angle

Google Layoff Affects 12,000 Employees

google layoff
Google's CEO announced to all its employees today layoffs starting now affecting 12,000 employees around the world. Once again, the cause of the layoff is over-hiring during the pandemic.

Well, this near year isn’t off to a great start for Tech Sector employees. They seen layoffs at Microsoft, Amazon, and now Google. Yep, the Google layoff affects 12,000 employees per an announcement from the company’s CEO, Sundar Pichai.

Google Layoff Details

So what’s the reason behind the layoffs? According to the CEO: “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.”

Basically, many Silicon Valley companies over-hired during the pandemic due to skyrocketing usage and demand. Couple that with cheap money due to low interest rates, these companies could afford to go on hiring sprees. Unfortunately, since the pandemic for all intents and purposes is over in many countries, and users return to their normal lives, companies like Google see their customer demand return to normal. In addition, with the rising costs of inflation and some countries going through recession, many customers are pulling back their spending.

A final reason for the Google layoff is to reduce spending on teams and divisions not focused on AI, as the company sees Artificial Intelligence as the future: “To fully capture it, we’ll need to make tough choices. So, we’ve undertaken a rigorous review across product areas and functions to ensure that our people and roles are aligned with our highest priorities as a company. The roles we’re eliminating reflect the outcome of that review.”

What Happens To The Terminated Employees?

The announcement covers what the U.S. based employees get as those in other countries get benefits in line with its countries’ laws.

  • Employees get minimum 60 days pay for the full notification period
  • Their severance package starts at 16 weeks (4 months) salary plus two weeks for every year employed at Google
  • At least 16 weeks (4 months) of vesting
  • Receiving their 2022 bonus and remaining vacation time
  • Six months of healthcare
  • Other resources like job placement services and immigration support.

In my opinion this severance package is in line with the other Tech Sector companies, besides Twitter, and gives each terminated employee a good cushion. Hopefully these individuals can find a new job quickly.

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