comscore Google to cut down job roles for rest of 2022 and 2023
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Google slows hiring for 2022, CEO Sundar Pichai blames global economic downturn in lengthy memo

Sundar Pichai said the company will be "slowing the pace of hiring for the rest of the year, while still supporting our most important opportunities."

sundar pichai

Sundar Pichai wrote a memo to the company employees.


Google is reportedly planning a slowdown in hiring for the rest of the year, a memo sent to employees has revealed. The tech giant has joined others in making adjustments to expenses as the global economic conditions worsen. While Google has mostly remained immune to drastic changes in the global economy, it has, for the first time, addressed the impact the company feels it is experiencing. Also Read - Google, Meta, Apple, Spotify and more: Why tech companies are slowing down hiring

In a memo, obtained by Bloomberg, Alphabet and Google CEO Sundar Pichai highlighted that “we’re not immune to economic headwinds” just like all companies and set the stage for the announcement that the company will be “slowing the pace of hiring for the rest of the year, while still supporting our most important opportunities.” Pichai said Google will focus on the hiring of people in engineering, technical, and other critical roles for the rest of 2022 and 2023. Also Read - Over 3 billion devices are now on Android globally, says Alphabet CEO Sundar Pichai

Pichai said the company added 10,000 employees, popularly called Googlers, in the second quarter, while, for the third quarter, it has a “strong number of commitments” such as recruiting college students. However, the roles are likely to go minimum. Also Read - Google CEO Sundar Pichai remains optimistic for Twitter under Elon Musk

“Moving forward, we need to be more entrepreneurial, working with greater urgency, sharper focus, and more hunger than we’ve shown on sunnier days. In some cases, that means consolidating where investments overlap and streamlining processes,” Pichai wrote.

Google during pandemic

The pandemic lashed nearly every industry, but the tech industry managed to escape the worse impact because of the change in how people — stuck in their homes — relied on their gadgets. YouTube, for instance, reported profits in the fourth quarter of 2020 with ad revenue of over $6.9 billion — a 46 percent increase over the previous quarter. Alphabet managed to endure the headwinds but there was still some impact, only aggravated by the Russian invasion of Ukraine earlier this year.

But Google is just one of the companies that are restructuring their company to absorb the impact. Uber recently said it will have to be “hardcore about costs” — hinting at the possible marginalisation of roles, while Meta wrote to its employees warning them of “serious times” ahead shortly after it froze hiring. Snap also announced plans to slow hiring, while Spotify, too, said it will take a break from recruiting more people.

While the aforementioned companies did not fire people, Netflix emerged as the company to fire hundreds of employees in an attempt to cut down on losses. Twitter also announced a layoff of several employees amid doubts over the takeover by Elon Musk, only to find itself battling the world’s richest man in court after he pulled out from the deal.

Here is the memo, in full:

Hi Googlers,

Hard to believe we’re already through the first half of 2022. It’s the right opportunity to thank everyone for the great work so far this year, and to share how my Leads and I are thinking about H2.

The uncertain global economic outlook has been top of mind. Like all companies, we’re not immune to economic headwinds. Something I cherish about our culture is that we’ve never viewed these types of challenges as obstacles. Instead, we’ve seen them as opportunities to deepen our focus and invest for the long term.

In these moments, I turn to our mission: to organize the world’s information and make it universally accessible and useful. It’s what inspired me to join the company 18 years ago, and what makes me so optimistic about the impact we are able to have on the world. Knowledge and computing are how we drive our mission forward. That’s the lens we use to decide where to invest — whether it’s in areas like Search, Cloud, YouTube, Platforms and Hardware, the teams that support them, or in the AI that enables more helpful products and services.

We help people and society when we focus on what we do best, and do it really well. The investments we’ve made in the first half of the year reflect this vision. In Q2 alone, we added approximately 10,000 Googlers, and have a strong number of commitments for Q3 start dates which reflects, in part, the seasonal college recruiting calendar. These are extraordinary numbers, and they show our excitement about long-term opportunities, even in uncertain times.

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, we’ll focus our hiring on engineering, technical and other critical roles, and make sure the great talent we do hire is aligned with our long-term priorities.

Moving forward, we need to be more entrepreneurial, working with greater urgency, sharper focus, and more hunger than we’ve shown on sunnier days. In some cases, that means consolidating where investments overlap and streamlining processes. In other cases, that means pausing development and re-deploying resources to higher priority areas. Making the company more efficient is up to all of us — we’ll be creating more ways for you all to engage and share ideas to help, so stay tuned.

Scarcity breeds clarity — this is something we have been saying since the earliest days of Google. It’s what drives focus and creativity that ultimately leads to better products that help people all over the world. That’s the opportunity in front of us today, and I’m excited for us to rise to the moment again.

–Sundar

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  • Published Date: July 13, 2022 11:31 AM IST



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