Google parent company Alphabet Inc announced on Friday its decision to lay off 12,000 of its workers following a shift in strategies and priorities. The company is now looking to boost its reliance on Artificial Intelligence (AI) technology.
Alphabet shares rose almost 4% in pre-market trading following the announcement. This is the latest in a slew of major tech company layoffs, including the likes of Microsoft Corp.
Microsoft announced its decision to cut 10,000 jobs as inflation concerns have convinced the company to cut costs. It too announced its decision to rely more on AI technology.
Alphabet’s CEO Sundar Pichai wrote in a staff memo that the company is now facing a different economic landscape from when it adopted its rapid hiring strategy two years ago—a decision that Pichai said he is taking responsibility for. He went on to say that Google is looking “to share some entirely new experiences for users, developers, and businesses” before emphasizing the opportunity that lies before the company in the AI sphere.
The company has reportedly already notified affected employees within the United States, preparing to provide them with severance and six months of healthcare as well as immigration support.