Get All Access for $5/mo

Google Will Lay Off 12,000 Workers Due to 'Difficult Economic Cycles' The tech giant sent out the layoff notice early Friday morning, joining the ranks of other tech giants that are reducing their workforces.

By Gabrielle Bienasz Edited by Jessica Thomas

Opinions expressed by Entrepreneur contributors are their own.

Anna Moneymaker / Staff
Google CEO Sundar Pichai in June 2022.

Google will lay off about 12,000 people in the U.S. beginning immediately, CEO Sundar Pichai announced in an email to staff on Friday, per CNBC.

"We've decided to reduce our workforce by approximately 12,000 roles," he wrote.

"This will mean saying goodbye to some incredibly talented people we worked hard to hire and have loved working with. I'm deeply sorry for that... I take full responsibility for the decisions that led us here," he added.

Related: 'Important Information About Your Role': Amazon Delivers News of Layoffs via Email

Google, like many tech companies, has been affected by the U.S. Federal Reserve raising interest rates. This, along with inflation, has led to reduced digital ad spending. Google's advertising revenue fell "dramatically" in earnings reported in late October, the Associated Press noted.

Google also put off paying 20% of employee bonuses until March or April, CNBC reported, citing internal documents. The company normally pays out year-end bonuses in January, but employees only received 80% of their total bonuses this month.

Google also recently made changes to its performance systems but has managed to avoid layoffs until now, unlike other tech giants. Peer Amazon announced plans to cut some 18,000 jobs, and Microsoft said Wednesday it will lay off 10,000 employees.

Related: Google Could Put Over 10,000 On Notice With Its New Rating System

Pichai said that the company over-hired in the memo. "Over the past two years we've seen periods of dramatic growth. To match and fuel that growth, we hired for a different economic reality than the one we face today," he wrote.

"As an almost 25-year-old company, we're bound to go through difficult economic cycles," he also said.

The Googlers who are laid off will receive pretty generous benefits: The memo stated the company will pay employees through a 60-day notification period and offer severance packages equal to 16 weeks of the person's salary. They'll receive an additional two weeks' severance for every year they've worked at the company.

Google will also offer "six months of healthcare, job placement services and immigration support for those affected," it noted.

"While this transition won't be easy, we're going to support employees as they look for their next opportunity," Pichai said. He ended the note by letting employees know they could work from home today.

Gabrielle Bienasz is a staff writer at Entrepreneur. She previously worked at Insider and Inc. Magazine. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Science & Technology

5 Rule-Bending AI Hacks to Make Your Mornings More Productive and Profitable

By 2025, AI will transform productivity by streamlining workflows and cutting costs. Major companies like Microsoft, Google, and OpenAI are leading the way, advancing AI into "Phase 3," where tools act as digital assistants. Discover 5 AI hacks to boost efficiency and redefine your daily routine.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Former Steve Jobs Intern Says This Is How He Would Have Approached AI

The former intern is now the CEO of AI and data company DataStax.

Marketing

5 Critical Mistakes to Avoid When Giving a Presentation

Are you tired of enduring dull presentations? Over the years, I have compiled a list of common presentation mistakes and how to avoid them. Here are my top five tips.