Google to slow down hiring for 2022; here's what CEO Sundar Pichai said in his memo
"It's up to all of us to make the firm more efficient. We'll be establishing more methods for you all to interact and share ideas to help, so stay tuned," Pichai added.
Alphabet, Google's parent company, will reduce hiring and investment until 2023, CEO Sundar Pichai announced in an email to staff. Pichai's message comes only weeks after Meta announced similar restrictions after failing to meet sales expectations.
"Like other businesses, we are not immune to economic challenges," Pichai said in the message. He further said, "We must be more entrepreneurial, working with greater eagerness, sharper concentration, and greater appetite than we have demonstrated in brighter days."
The corporation is not completely stopping recruiting, according to the memo; it will continue to hire for "engineering, technical, and other important areas." In the message, Pichai explains that the retreat will entail "paused development and re-deploying resources to higher priority areas." He began by admitting that "the uncertain global economic future has been on his mind."
During this time, the Alphabet and Google CEO also stated that the business will reallocate resources to higher priority areas and halt existing projects. "It's up to all of us to make the firm more efficient. We'll be establishing more methods for you all to interact and share ideas to help, so stay tuned," he added.
Alphabet shares are down 21% this year, tumbling alongside the rest of the tech industry as investors exit the equities that propelled the previous decade's bull market. The firm fell short of analyst expectations in the first quarter, and Chief Financial Officer Ruth Porat cautioned that another difficult period might be coming.
Growth in the first quarter decreased to 23% year on year, down from 34% in the first three months of 2021, when the economy was recovering from the epidemic. Nonetheless, Pichai stated in the letter that the business employed 10,000 people in the second quarter.
Google, which has typically invested extensively in R&D, will be more selective about where it invests its money during this era of economic uncertainty. Similarly, Snapchat parent company Snap said in May that it was slowing down the recruiting process. It was reported earlier this week that Microsoft lay off a fraction (1%) of its 180,000-person staff due to growing inflation. This comes after Microsoft, located in Redmond, Washington, delayed recruiting in Windows, Teams, and Office.