Google expects hiring to slow for the rest of the year, a memo sent to employees revealed. The tech giant has joined others in adjusting spending as global economic conditions deteriorate. While Google has remained mostly immune to drastic changes in the global economy, it has, for the first time, addressed the impact the company is feeling. Also Read – Google CEO Sundar Pichai Remains Optimistic For Twitter Under Elon Musk
In a note, obtained by Bloomberg, Alphabet and Google CEO Sundar Pichai stressed that “we are not immune to economic headwinds” like all companies and set the stage for the announcement that the company “will slow down the rate of hiring for the remainder of the year, while supporting our most important opportunities Pichai said Google will focus on hiring people in engineering, technical and other critical roles for the remainder of 2022 and 2023. Also Read – These Tech CEOs Earned Massive Bonuses During the Pandemic
Pichai said the company added 10,000 employees, commonly referred to as Googlers, in the second quarter, while for the third quarter it had a “high number of commitments” such as recruiting students. However, the roles are likely to be minimal. Also Read – Sundar Pichai has a plan to push Google forward and it involves India
“Moving forward requires us to be more enterprising, to work with greater urgency, sharper focus and more hunger than we showed on sunnier days. In some cases, that means consolidating where investments overlap and streamline processes,” Pichai wrote.
Google during the pandemic
The pandemic has hit almost every industry, but the tech industry has managed to escape the worst impact due to the change in how people – stuck at home – relied on their gadgets. YouTube, for example, posted profits in the fourth quarter of 2020 with advertising revenue of over $6.9 billion, a 46% increase from the previous quarter. Alphabet managed to weather the headwinds, but there was still some impact, only made worse by the Russian invasion of Ukraine earlier this year.
But Google is just one of the companies restructuring their business to absorb the impact. Uber recently said it will have to be ‘hard-core on costs’ – hinting at the possible marginalization of roles, while Meta wrote to its employees warning them of ‘serious times’ ahead soon after freezing hiring . Snap also announced plans to slow down hiring, while Spotify also said it would take a break from recruiting more people.
While the aforementioned companies did not lay off people, Netflix emerged as the company that laid off hundreds of employees in an effort to cut losses. Twitter also announced the firing of several employees amid doubts over Elon Musk’s takeover, only to find itself in court against the world’s richest man after he withdrew from the deal.
Here is the memo, in full:
Hard to believe we’ve already made it through the first half of 2022. This is a great opportunity to thank everyone for the great job they’ve done so far this year and to share how my prospects and I feel about H2.
The uncertain global economic outlook was the focus of concern. Like all businesses, we are not immune to economic headwinds. What I cherish about our culture is that we have never viewed these types of challenges as obstacles. Instead, we saw them as opportunities to deepen our focus and invest for the long term.
In these moments, I turn to our mission: to organize the world’s information and make it universally accessible and useful. It’s what inspired me to join the company 18 years ago and what makes me so optimistic about the impact we can have on the world. Knowledge and IT are how we advance our mission. It’s the lens we use to decide where to invest, whether it’s in areas like search, cloud, YouTube, platforms and hardware, the teams that support them, or in the AI that enables more useful products and services.
We help people and society when we focus on what we do best and do it very well. The investments we made during the first half of the year reflect this vision. In Q2 alone, we recruited approximately 10,000 Googlers and have a large number of commitments for Q3 start dates, which reflects, in part, the universities’ seasonal recruiting schedule. These are extraordinary numbers, and they show our enthusiasm for long-term opportunities, even in uncertain times.
Due to the progress made in hiring so far this year, we will slow the pace of hiring for the remainder of the year, while supporting our most important opportunities. For the remainder of 2022 and 2023, we will focus our recruitment on engineering, technical positions and other critical roles, and ensure that the great talent we hire is aligned with our long-term priorities.
To move forward, we must be more enterprising, work with greater urgency, sharper focus and more hunger than we have shown on sunnier days. In some cases, this means consolidating where investments overlap and streamlining processes. In other cases, it means pausing development and redeploying resources to higher priority areas. Making the business more efficient is up to all of us – we’ll be creating more ways for you all to engage and share ideas to help, so stay tuned.
Scarcity breeds clarity – it’s something we’ve been saying since the early days of Google. It’s what drives the focus and creativity that ultimately leads to better products that help people everywhere. This is our opportunity today, and I am delighted that we are rising to the moment.
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