Jan 20 (Reuters) – Google parent Alphabet Inc ( GOOGL.O ) is cutting about 12,000 jobs, or 6% of its workforce, it said on Friday, as Silicon Valley begins its latest wave of layoffs and struggles.
Alphabet, whose shares rose 3% in pre-market trading, are making the cuts as the US company grapples with the risk of a long-running trend in the technology sector.
Alphabet has for years attracted the talent behind Google, YouTube and other products that reach billions of users, but now it is locked in competition with Microsoft Corp ( MSFT.O ) in an area known as generative artificial intelligence.
The Alphabet cuts come days after Microsoft said it would cut 10,000 jobs.
Alphabet CEO Sundar Pichai told employees in a memo that the company had re-evaluated its products, people and priorities, which led to job cuts across regions and technology. It had grown rapidly for the better but now faced “other financial issues”.
“The fact that this change will affect the lives of people working at Google weighs heavily on me, and I take responsibility for the decisions that have brought us here,” Photosi said.
Label’s job losses affect teams across the company including recruiting and other business functions, as well as other engineering and product teams.
The layoffs have taken place around the world and are affecting US workers immediately.
Alphabet has already sent an email to affected employees, the memo said, while the process will take longer in some countries due to local laws and regulations.
The news comes at a time of economic uncertainty and technological promise.
“I am confident of the great opportunities that lie ahead of us because of the strength of our work, the demand for our products and services, and our initial investment in AI,” Photosi said.
Jeffrey Dustin reports from Davos, Switzerland; Edited by Elaine Hardcastle and Alexander Smith
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