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Alphabet CEO tells Googlers: More job cuts on the way

(2024/01/18)


Alphabet boss Sundar Pichai is warning Googlers to brace themselves for more jobs cuts in 2024 though they won’t be as deep as last year.

So far, Google has waved goodbye to more than [1]1,000 employees in January , including team members in the core engineering group, the Google Assistant unit, Devices and services, vid platform [2]YouTube , and even its [3]ad biz .

Anyone at the company thinking those are more than enough already will be sorely disappointed by the memo dispatched to the workforce by Pichai yesterday, in which he outlines the need to go further.

[4]

“We have ambitious goals and will be investing in our big priorities this year,” he said in the memo, seen by [5]The Verge . “The reality is that to create the capacity for this investment, we have to make tough choices.”

[6]

[7]

“These role eliminations are not at the scale of last year’s reduction, and will not touch every team,” he added. “But I know it’s very difficult to see colleagues and team impacted.”

The aim of the cuts in 2024 is concerned with “removing layers to simplify execution and drive velocity in some areas,” he said, with some “role eliminations” on the way.

[8]

“Many of these changes are already announced, though to be upfront, some teams will continue to make specific resource allocation decision throughout the year where needed, and some roles may be impacted.”

[9]Miffed Googlers meme on CEO's $226M pay award amid cost-cutting campaign

[10]'Only 700 new IT jobs' were created in US last year

[11]Quarter of tech pros say they're considering quitting jobs in next six months

[12]Boss such a tyrant you need a job quitting agent? It works in Japan

[13]Bosses face losing 'key' workers after forcing a return to office

For those with a short memory, Google [14]got rid of 12,000 employees in 2023 after a hiring frenzy during the early years of the pandemic: headcount grew from 120,000 at the end of Q1 2020 to 186,000 plus at the end of September 2022. Redundancies were made across the business.

Some institutional investors wanted to see Google go even further, with Sir Christopher Hohn’s The Children’s Investment Fund calling for up to [15]30,000 Googler’s heads to roll . He urged management to reduce headcount to 150,000. It is perhaps worth pointing out that Hohn reportedly paid himself $1.8 million a day in 2022.

Talking of money, Google reported net profit of $53.1 billion in the nine months ended [16]September 30, 2023 , compared to $46.34 billion in the corresponding period of 2022. Revenue was $221.1 billion, up from $206.78 billion. Total costs and expenses were up to $160 billion versus $150 billion.

In other cost cutting measures last year, Google froze wages, [17]sweated PC and datacenter assets for longer, and consolidated real estate, asking some staff in the US to [18]share desk space .

[19]

Google wasn't alone last year and almost a quarter of a million jobs cuts were made in the tech sector worldwide, as financial results dipped and many companies realized they'd recruited too aggressively. ®

Get our [20]Tech Resources



[1] https://www.theregister.com/2024/01/11/google_rings_in_2024_with/

[2] https://www.nytimes.com/2024/01/17/technology/youtube-tech-layoffs-continue.html

[3] https://www.businessinsider.com/google-is-laying-off-hundreds-of-employees-in-its-advertising-team-2024-1?r=US&IR=T

[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2ZalZPukNA7D89yBABjuiqgAAANU&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0

[5] https://www.theverge.com/2024/1/17/24042417/google-layoffs-2024-internal-employee-memo-sundar-pichai

[6] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZalZPukNA7D89yBABjuiqgAAANU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZalZPukNA7D89yBABjuiqgAAANU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[8] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44ZalZPukNA7D89yBABjuiqgAAANU&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0

[9] https://www.theregister.com/2023/05/04/googlers_upset_with_ceos_226m/

[10] https://www.theregister.com/2024/01/08/700_it_jobs_us/

[11] https://www.theregister.com/2023/07/26/quarter_of_tech_pros_consider/

[12] https://www.theregister.com/2023/07/05/job_quitting_agents/

[13] https://www.theregister.com/2023/06/29/wfh_rto_survey/

[14] https://www.theregister.com/2023/01/20/google_to_chop_12000_employees/

[15] https://www.theregister.com/2023/01/25/google_investor_more_cuts/

[16] https://abc.xyz/assets/4a/3e/3e08902c4a45b5cf530e267cf818/2023q3-alphabet-earnings-release.pdf

[17] https://www.theregister.com/2023/04/04/google_cost_cutting/

[18] https://www.theregister.com/2023/02/23/google_staff_asked_to_share/

[19] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_offprem/front&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33ZalZPukNA7D89yBABjuiqgAAANU&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0

[20] https://whitepapers.theregister.com/



trevorde

Beatings will continue until morale improves

Don't worry!

Snake

Pichai's 2022 pay package was $226 million; I'm sure that 2023's pay didn't make him feel any morale hit at all.

"they won’t be as deep as last year"

Pascal Monett

I'm sure those who do get cut will understand the difference . . .

Tainted love

elsergiovolador

These big corporations often hire talent, so that competition can't. If competition cannot find people to execute the idea and deliver the challenger product, it keeps the big corporation bottom line safe.

Once the risk has been mitigated, they can release potential employees back in the wild.

The thing is, many smaller employers when they see Google, Facebook or other nasty corporation on the candidate's resume, it lands straight in the bin, sometimes with a comment "we can't have unlucky people on board" or that it's not a good cultural fit if someone could justify working there.

To simplify execution

abend0c4

You know they would if they could...

Come on Pinchal

Anonymous Coward

Be brave. Close it all down. The world would be a far, far better place if you did just that.

Avoid everything Google owned/operated at all costs just to preserve your data.

First we cripple our search engine

Jou (Mxyzptlk)

and then we fire our best people.

Success!

Hmm

codejunky

A few negative comments here but they are still nowhere near 2020 numbers. They added 66000 jobs since then and aim for 150000! It really sucks to be laid off but it is part of employment.

God was satisfied with his own work, and that is fatal.
-- Samuel Butler