In a shocking move, Alphabet Inc., the parent company of Google announced plans to layoff 12,000 employees, which represents about 6% of its total workforce. The layoffs, which are the company’s first in its history, come as a response to the economic downturn caused by the COVID-19 pandemic.
According to a company statement, the layoffs will primarily affect the company’s hardware division, which includes its Pixel smartphone and smart home devices. However, it’s expected that the layoffs will also impact other areas of the company, such as its advertising and cloud computing divisions.
The decision to lay off such a large portion of its workforce is a clear indication of the severity of the economic impact of the pandemic on the tech industry. As the world continues to grapple with the pandemic, businesses are facing unprecedented challenges and are being forced to make difficult decisions.
In the case of Alphabet, the company has been hit hard by the pandemic, with advertising revenue, a significant portion of its income, taking a significant hit. The company has also had to deal with increased competition in the hardware market, as well as the ongoing shift towards remote work, which has led to a decline in demand for its hardware products.
The layoffs are a harsh blow to the affected employees and their families, and the company has stated that it will provide support to those who are losing their jobs. However, it’s clear that the layoffs are a necessary step for the company to remain financially stable in these uncertain times.
It’s important to note that despite this layoff, Google and Alphabet remains one of the most valuable and profitable companies in the world. This move is a sign of the impact of the pandemic on the economy, and it’s likely that other companies will also be forced to make similar decisions in the coming months.
Alphabet’s decision to lay off 12,000 employees reflects the economic challenges facing the tech industry due to the COVID-19 pandemic. While it’s a difficult decision for the company, it’s a necessary step for it to remain financially stable in these uncertain times. The company will provide support to the affected employees and their families.