Alphabet Inc.'s Google will slow recruiting for the rest of the year due to the economic downturn, said Chief Executive Officer Sundar Pichai in an email to employees. According to Bloomberg, Pichai stated that the company will focus on hiring "engineering, technical, and other important skills" in 2022 and 2023.
CEO Pichai stated, "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. "
Normally, the internet behemoth has been remarkably resilient to the technology sector's recessions. Following the 2008 financial crisis, Google suspended hiring. However, it has consistently added thousands of new staff for its main marketing business as well as unprofitable areas such as smartphones, self-driving cars, and wearable devices.
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Alphabet, the parent company of Google, which employed over 164,000 people as of March 31, has hired mostly in recent years for Google's cloud division and new industries such as hardware. "In some cases, that means consolidating where investments overlap and streamlining processes," Pichai wrote. In other instances, it will mean "pausing development and re-deploying resources to higher priority areas," he said. Pichai finished the letter by mentioning to staff members that "scarcity breeds clarity" and highlighting that he is excited to rise to the moment again.
Google's decision is similar to some of the other technology companies. Microsoft Corp., Google's rival, revealed earlier this week that it was reducing a limited number of jobs. Because of economic worries, Meta Platforms Inc (Facebook) has limited its hiring goals. Companies, including Lyft and Tesla, also placed hiring freezes in May and June. Tesla has chosen to reduce its salaried employees by 10% over the next three months.
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