Bloomberg News reports that Alphabet Inc.’s Google plans to slow down recruitment for the rest of 2022. This move is a result of the impending economic recession, as stated by Sundar Pichai, the Chief Executive Officer, on Tuesday in an email sent to his staff.
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According to the CEO, Pichai, the company will focus on recruiting critical roles, technical, and engineering professionals in 2022 and 2023, as expressed in a mail to Bloomberg News.
Pichai said that moving ahead, it is essential to be entrepreneurial, operating with great urgency, greater focus, and more hunger must be there among all compared to what everyone has on any sunny day. In a way, it also means that investments must be consolidated and streamline various processes.
If one travels back in history, Google has always been immune to economic upheavals that have taken place in the technology sector. It last paused hiring for the company’s advertisement business in areas like wearable devices, self-driven cars, and smartphones. As of March 31st, Google parent Alphabet employed around 164,000 people in areas like hardware and cloud division of Google.
This move of Google mirrors that of other technology companies. In May, Lyft Inc. and Snap Inc stated that they would slow down on hiring. Instacart Inc. stated that it would slow down job growth. This was followed by Tesla Inc announcing a 10% reduction in salaries.
At the beginning of this week, a rival company of Google, Microsoft Corp., announced that it plans to cut a small number of jobs. Meta Platforms Inc. was also found to defer and reduce hiring plans due to concerns related to the economic slowdown.
In his email, Pichai stated that as many as 10,000 staffers were added to Google during the second quarter. It also said that the company has strong commitments regarding recruiting college individuals in the next few months.
At the beginning of this week, Microsoft Corp. announced that a small number of job cuts were in the pipeline. Meta Platforms Inc. reduced recruitment plans due to concerns related to prevailing economic conditions.
