As seen in an email sent by CEO Sundar Pichai to employees on Tuesday, big tech company Alphabet will reduce its hiring and investment in 2023. In the memo to employees, the Alphabet boss wrote that “Like all companies, we’re not immune to economic headwinds. We need to be more entrepreneurial working with greater urgency, sharper focus, and more hunger than we’ve shown on sunnier days.”
In recent times, companies around the world including big names like Coinbase, Netflix, Tesla, etc., have either paused hiring or cut down on their workforce in the face of rapidly changing economic realities and uncertainties. CEO Sundar Pichai acknowledges that “the uncertain global economic outlook has been top of mind.”
Like other tech companies, Alphabet’s shares have also suffered some losses. So far this year, the company’s shares have plummeted 21 percent. For the first time, the company fell below analysts’ expectations after missing first-quarter estimates. The company also warned that the next quarter could be difficult.
Sundar Pichai said in the letter that the company hired 10,000 employees in the second quarter adding that “Because of the hiring progress achieved so far this year, we’ll be slowing the pace of hiring for the rest of the year, while still supporting our most important opportunities. For the balance of 2022 and 2023, the company will focus on hiring on engineering, technical, and other critical roles.”
Prior to the current realities, Google had a history of investing heavily in research and development. But in the face of uncertainties and current realities, it seems the company will be very particular about where it focuses its spending. “In some cases, that means consolidating where investments overlap and streamlining processes,” the company’s CEO explained emphasizing that it could also mean “pausing development and re-deploying resources to higher priority areas.”
“I’m excited for us to rise to the moment again,” the CEO wrote encouraging employees that better days are ahead for the company.