Alphabet (NASDAQ: GOOGL) CEO Sundar Pichai foretells a slump in the economy as it doesn’t bid well according to his estimations. He suspects a recession will not spare any Big Tech or multinationals as investors liquidate their stakes in tech giants.
Alphabet, the parent company of Google, seems to prepare for the tough times ahead. Sundar Pichai, the CEO of Mountain View-based California company, has just warned employees that the foreseeable recession will not spare the enterprise.
Pichai said, “The uncertain global economic outlook has been top of mind. Moving forward, we need to be more entrepreneurial, working with greater urgency, sharper focus and more hunger than we’ve shown on sunnier days. In some cases, that means consolidating where investments overlap and streamlining processes. In other cases, that means pausing development and redeploying resources to higher priority areas.”
Google is taking proactive steps to keep costs under control in the event of a severe economic recession. The internet behemoth has decided to reduce recruiting for the remainder of the year in light of the looming recession. For the balance of 2022 and 2023, “we’ll focus our hiring on engineering, technical and other critical roles, and make sure the great talent we do hire is aligned with our long-term priorities,” said Pichai.
Emphasizing entrepreneurship, Pichai pressed on Google’s need to be “more entrepreneurial, working with greater urgency, sharper focus, and more hunger than we’ve shown on sunnier days.”
The intention of the memo released by Google clarifies the consolidation of overlapping investments and streamlined processes. This branches out to potentially pausing development and redeploying resources to higher priority areas. The administration thinks efficiency rests on everyone creating more ways to engage and share ideas to help.
In the past, Google has frequently remained unaffected to a significant degree by economic downturns that have affected the technology sector. To find an instance of a hiring freeze at the internet behemoth, you had to travel back to the time of the financial crisis. However, ever since then, Google has not stopped recruiting new employees. According to a statement with the Securities and Exchange Commission, as of March 31, the company had 163,906 employees, representing a year-over-year increase of 17.1 percent (SEC).
Google isn’t the only tech company worried about the global recession. Meta Platforms (NASDAQ: META) CEO Mark Zuckerberg predicted “one of the biggest downturns that we’ve seen in recent history” on June 30. Because of this, Meta plans to emphasize its cost-cutting strategy. Reuters reports that the company aims to hire between 6,000 and 7,000 new engineers in 2022, compared to the original goal of 10,000. As a result, there has been a 30% to 40% adjustment.
For fear of the global recession in 2022 and 2023, Microsoft is also reducing the amount of staff it hires as a way to protect itself from a downturn in the economy. The Executive Vice President in the Office and part of Windows, Rajesh Jha, is now the designated in charge of all new hires happening at Microsoft (NASDAQ: MSFT). Windows, Office, and Teams chat and conferencing software divisions will hire fewer staff.
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