“Google Spends ₹17,500 Crore on Massive Layoffs: 12,000 Jobs Cut”
In a significant move, Google’s parent company, Alphabet, has disclosed that it spent ₹17,500 crore (approximately $2.1 billion) on severance and related expenses during the massive layoffs announced in January 2023. The layoffs, the largest in Google’s history, impacted over 12,000 employees. Alphabet revealed these financial details in its fourth-quarter earnings release on Tuesday, highlighting the substantial cost incurred in reshaping its workforce.
In a significant move, Google’s parent company, Alphabet, has disclosed that it spent ₹17,500 crore (approximately $2.1 billion) on severance and related expenses during the massive layoffs announced in January 2023. The layoffs, the largest in Google’s history, impacted over 12,000 employees. Alphabet revealed these financial details in its fourth-quarter earnings release on Tuesday, highlighting the substantial cost incurred in reshaping its workforce.
The January 2023 layoffs, amounting to 12,000 jobs or 6% of its global workforce, were characterized as “essential” by Alphabet’s CEO, Sundar Pichai. The company has continued its restructuring efforts this month, spending an additional $700 million on severance charges for over 1,000 roles, as revealed in the latest financial report.
Despite the substantial costs associated with the layoffs, Alphabet reported a noteworthy return to double-digit revenue growth in the last quarter of the previous year. Google’s dominance in search and online advertising, coupled with the success of video-sharing platform YouTube and its cloud computing unit, contributed to this resurgence.
While Google’s ad sales showed growth, it lagged behind increases in other areas such as cloud computing and YouTube subscriptions. The fourth-quarter results exceeded analysts’ expectations; however, Alphabet’s shares faced a dip of nearly 7% in extended trading.
The company attributed its profit boost in the final quarter to the positive impact of artificial intelligence (AI). Alphabet CEO Sundar Pichai emphasized the ongoing benefits from AI investments and innovation across various segments of the company.
Looking ahead, CEO Sundar Pichai has alerted Google employees to anticipate further job cuts in the coming months, emphasizing the goal to “simplify execution.” In a memo, Pichai stated that the upcoming layoffs will focus on streamlining operations by “removing layers” from various departments to enhance overall efficiency. He clarified that these role eliminations are not at the scale of last year’s reductions and will not touch every team.
The announcement sets the stage for continued changes within Google as it navigates the evolving landscape of the tech industry, emphasizing the company’s commitment to adaptability and efficiency in the face of future challenges.
Sources By Agencies
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