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While the entire tech world is discussing the layoffs, Google’s chief executive officer Sundar Pichai, in an internal meeting on Tuesday, has revealed the reason for Google’s decision to lay off its 12,000 employees.
According to a Bloomberg report, Pichai said that he had consulted with the company’s founders and board in making the decision for 6% cuts.
“If you don’t act clearly and decisively and early, we can compound the problem and make it much worse. These are decisions I needed to make,” Pichai said, as quoted by Bloomberg.
According to earlier reports, on Friday, Pichai sent an email to his employees regarding the layoffs citing difficult economic cycles. “I have some difficult news to share. We’ve decided to reduce our workforce by approximately 12,000 roles. We’ve already sent a separate email to employees in the US who are affected. In other countries, this process will take longer due to local laws and practices,” his email read.
He also reportedly added that since all the bonuses are tied to the company’s performance, all senior vice presidents would also see a significant reduction in their annual bonus this year as the idea is for everyone to be accountable.
The layoffs came just a few weeks after other tech giants like Facebook parent Meta, Twitter and Amazon too, announced mass layoffs in a bid to cut costs.
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