In light of a probable economic downturn, Google, a division of Alphabet Inc., plans to reduce recruiting for the rest of the year, CEO Sundar Pichai said in an email to workers on Tuesday.
In 2022 and 2023, the business would prioritize recruiting for “engineering, technical, and other important jobs,” according to Pichai, in a copy of the email from Bloomberg News.
Pichai stated in his letter that going ahead, “we need to be more entrepreneurial, working with greater urgency, sharper concentration, and more desire than we’ve demonstrated on brighter days.” When investments overlap, consolidation and process simplification are necessary for some circumstances.
In the past, Google has mostly escaped the technology industry’s economic downturns. The internet giant stopped hiring following the financial crisis more than ten years ago but has subsequently hired a steady stream of new workers for both its core advertising business and less profitable sectors like cellphones, self-driving vehicles, and wearable technology. In recent years, Google’s parent company Alphabet, which had roughly 164,000 employees as of March 31, has hired mostly for Google’s cloud business and new industries like hardware.
Similar to other IT companies, Google is taking similar steps. Restrictions on hiring were made public by Lyft Inc. and Snap Inc. in May. A few weeks later, Instacart Inc. said it will restrict job growth, while Tesla Inc. announced a 10% reduction in salaried staff. This week, Google’s rival Microsoft Corp. announced that it will be firing a small number of staff members. In addition, Meta Platforms Inc. reduced its hiring goals due to economic concerns.
According to Pichai’s email, Google recruited 10,000 new employees in the second quarter and has made “strong promises” to keep employing college grads in the upcoming months.