The White House Brushed Off Concerns About Mass Firings At Microsoft And Amazon. Now Google Is Laying Off Employees Too.

Google Several thousand employees will be fired days later, according to plans. White House Besorgiments about the layoffs Thesweeping technology sector.

Google CEO Sundar Pichai stated to the company Friday that 12,000 positions would be eliminated due to the restructuring. macroeconomic turmoil. The layoffs will impact approximately 6% of the company’s workforce Nearly 187,000

“Over the past two years we’ve seen periods of dramatic growth. To match and fuel that growth, we hired for a different economic reality than the one we face today. I am confident about the huge opportunity in front of us thanks to the strength of our mission,” Pichai stated in a memo. “To fully capture it, we’ll need to make tough choices. So, we’ve undertaken a rigorous review across product areas and functions to ensure that our people and roles are aligned with our highest priorities as a company. The roles we’re eliminating reflect the outcome of that review.”

This news comes just days after Satya Nadella, Microsoft CEO, announced the same. revealed The company would lay off some 10,000 workers, just weeks after Amazon CEO Andy Jassy. unveiled Total headcount reduction of 18,000 employees. According to a report by a Technology Companies, there were more than 90,000. report CrunchBase.

“As an almost 25-year-old company, we’re bound to go through difficult economic cycles,” Pichai continued. “These are important moments to sharpen our focus, reengineer our cost base, and direct our talent and capital to our highest priorities.”

Karine Jean-Pierre, White House Press Secretary deflected questions from journalists on Wednesday regarding the sector’s layoffs. One reporter noticed that President Joe Biden had appeared “quite optimistic” He made the latest economic statements and was asked if the Microsoft layoffs are a matter of concern. “matter of concern” for the administration. Jean-Pierre replied that the commander in chief watches closely “anytime there are reports of Americans losing their jobs.”

“I don’t have a comment on specific moves announced by particular companies. As you know, we’re very careful from here talking about private companies. But more broadly speaking, layoffs remain near record lows according to job openings data,” She continued. “Companies across the economy are continuing to grow and invest in the United States.”

Another reporter asked about the consequences of continued dismissals. “impact the recovery in the coming months,” Jean-Pierre said that “layoffs remain near record lows” All across the economy. “We’re seeing the President’s economic policy actually working,” She said. “Is there more work to do? Always more work to do, and you hear that from us as well.”

Technology sector layoffs are occurring as prominent investors criticize executives who have rapidly expanded payrolls. They call for a reduction of headcount to match. dismal market forecasts In the immediate future. These dismissals are also made after the Federal Reserve raised interest rates Three-quarters of an inch per month on four consecutive occasions, before implementing a 5% increase last month, which will increase borrowing costs for both businesses and consumers.

The central bank officials have warned before that higher unemployment would result from economic declines due to rate increases. “While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses,” Jerome Powell, Federal Reserve Chair remarked Last year. “These are the unfortunate costs of reducing inflation.”

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