LOS ANGELES, CALIFORNIA – June 9, Google CEO Sundar Pichai speaks at a panel at the CEO Summit of the Americas hosted by the American Chamber of Commerce on June 9, 2022 in Los Angeles, California. The CEO Summit entered the second day of the event with the official signing of the “International Coalition to Connect Marine Protected Areas” and a speech by US President Joe Biden. (Photo by Anna Moneymaker / Getty Images)
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Google’s Parents Alphabet will slow the pace of hiring and investment through 2023, CEO Sundar Pichai said in an email to employees on Tuesday.
“Like all companies, we are not immune to economic headwinds,” Pichai wrote in the memo, seen by CNBC. on sunny days. “
He began by acknowledging that “the uncertain global economic outlook has been of primary concern.”
Shares of Alphabet are down 21% so far this year, along with the rest of the tech industry as investors pivot away from stocks that have driven the bull market over the past decade. The Company miss Analyst estimates for the first quarter and Chief Financial Officer Ruth Porat warning Another difficult period may lie ahead.
Growth in the first quarter slowed to 23% from a year earlier, down from 34% growth in the first three months of 2021, as the economy was reopening after the pandemic. However, Pichai said in the letter that the company hired 10,000 employees in the second quarter.
“Given the hiring pace we’ve made this year, we’ll slow down hiring for the rest of the year, while still supporting our most important opportunities,” he wrote. The company will focus on recruiting in engineering, engineering and other key roles. “
A Google spokesperson declined to comment.
Google, which has previously invested heavily in research and development, will also be more specific about where it spends money in these uncertain economic times.
“In some cases, that means consolidation where investments overlap and streamlining processes,” Pichai wrote. In other cases, that means “pausing development and redeploying resources to higher priority areas,” he said.
Pichai concluded the note by telling employees that “scarcity creates clarity” and emphasized that “I’m thrilled for us to rise to success again.”
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