Alphabet Inc.’s Google plans to go slow on hiring for the rest of the year and consolidate investments through 2023, according to Chief Executive Sundar Pichai.
In an email sent to employees, he acknowledged that the uncertain global economic outlook has been top of mind while making the decision, noting that it is not immune to economic headwinds just like all companies.
Pichai said, “Because of the hiring progress achieved so far this year, we’ll be slowing the pace of hiring for the rest of the year, while still supporting our most important opportunities.”
For the balance of 2022 and 2023, the company will focus on hiring on engineering, technical and other critical roles, aligned with long-term priorities.
Further, Pichai urged employees to be more entrepreneurial than during sunnier days. They were asked to work with greater urgency, sharper focus, and more hunger. In some cases, that means consolidating where investments overlap and streamlining processes, while in other cases, that means pausing deployment and re-deploying resources to higher priority areas.
He noted that Google hired about 10,000 new employees in the second quarter, and have a strong number of commitments for third quarter, partly reflecting the seasonal college recruiting calendar.
As of March 31, Alphabet reported 163,906 employees, up 17 percent from a year earlier.
Citing rising inflation and growing concerns about the economic challenges, tech companies have been slowing down or freezing their recruitment off late.
The Wall Street Journal reported that Microsoft Corp. announced plans to cut a small percentage of its staff, reflecting regular adjustments at the start of its fiscal year, and rapid-delivery startup Gopuff cut 10 percent of its workforce, or about 1,500 employees.
In early June, Bloomberg had reported that Elon Musk wanted to pause all hiring worldwide, as Tesla Inc. has become overstaffed in some areas. Musk then noted that the planned cuts would amount to about a 3.5 percent reduction in total headcount at the company.
In late June, the luxury electric car maker laid off about 200 employees in its Autopilot unit as it closed down its office in San Mateo, California as part of cost cutting efforts.
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