Alphabet (GOOGL), the parent company of search engine Google, is eliminating 12,000 jobs as it grapples with a slowdown in online advertising and prepares for a global recession.
In a memo to staff, Alphabet said that it is reducing its global workforce by about 6% as demand for its products and services declines.
The job cuts at Alphabet are the latest in the technology sector and come a few days after Microsoft (MSFT) announced that it is eliminating 10,000 workers from its payroll.
The cuts at Alphabet will impact teams across the company, including recruiting and some corporate functions, as well as engineering and product staff.
The layoffs are global and will impact employees immediately, Google said in the memo.
The workforce reductions come even as Google, Microsoft and other tech companies see significant progress in the advancement of software known as “generative artificial intelligence.”
Sundar Pichai, Alphabet’s chief executive officer (CEO), said in the memo to staff: “I am confident about the huge opportunity in front of us thanks to the strength of our mission, the value of our products and services, and our early investments in AI.”
Alphabet’s stock is down 30% in the last year and currently trading at $93.05 U.S. per share.
