Google Employees Suggest That The Layoffs Were Arbitrary, Says Report

The layoffs, which were implemented by parent company Alphabet Inc., resulted in the loss of around 6% of the company’s full-time workforce. One Google employee based in the UK commented that “psychological safety is paramount” and questioned the layoffs of high performers and people on immigration visas, as per a report from New York Post.

“How are we supposed to ever feel safe again?” the employee wondered. Other employees also questioned the reason for the layoffs, with one employee writing, “The layoffs seem random. I am pro-Google, but I’m pretty shook right now. Help me understand”. Another employee reportedly wondered if working hard would make a difference in their job security. Google CEO Sundar Pichai denied that the layoffs were done randomly and urged his employees to stay focused on their work as the company navigates difficult economic terrain.

Pichai says layoffs were necessary due to the economic environment

Pichai acknowledged that the situation was was “very sad” as it led to the “loss of some really good colleagues across the company”. He also revealed that he consulted with Google co-founders and controlling shareholders Sergey Brin and Larry Page as well as members of the board before proceeding with the layoffs. Pichai explained that Google had gone on a hiring spree in 2021, which he called “one of the strongest years we’ve ever had in the history of the company”. Despite the company’s revenue surging 41% during that year, Pichai announced that the change in the economic environment necessitate layoffs. He also added that executives would have to agree to pay cuts and reductions in their annual bonus, though he did not provide specific details.

The economic environment

Google isn’t the only company to have laid off its employees. The tech sector as a whole is witnessing layoffs. This is happening because the era of easy money has ended. Easy money refers to a time when the interest rates are low, which has been the case in the US, since the recovery after the 2008 crash. However, as inflation in the US soared to a 40-year high, the Federal reserve in the US decided to take inspiration from Volcker and raise rates to control inflation. The downside of rate hikes is that they may trigger a recession, which is the fear in financial markets.