Alphabet Layoffs: Here's Why They Had to Happen
Investors wondering if Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) would join other big tech companies in announcing mass layoffs finally got their answer.
The Google parent said Friday morning that it would let go of 12,000 employees, cutting roughly 6% of its workforce. The decision comes as the company's revenue growth slowed significantly throughout 2022 and as profits fell sharply, even as head count jumped roughly 24% to 187,000 over the past year.
In a letter to employees shared publicly, CEO Sundar Pichai acknowledged the same reality that his fellow tech chiefs had, saying: "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." He also said the move would give the company additional resources to focus on artificial intelligence (AI).
Source Fool.com
