Google and Microsoft have taken steps to shore up looming recession next year. The search giant slowed recruitment for 2023 just as Windows-owner has laid off workers in response to strong indications that inflation-plagued US economy is tending towards a full-on recession.
Speaking specifically on the threat of economic recession in his email to Google staff, Google CEO Sundar Pichai said on Tuesday that the company will focus on “engineering, technical and other critical roles” for the rest of the year and for 2023 in the face of an “uncertain global economic outlook.”
Pichai charged members of staff to “be more entrepreneurial, working with greater urgency, sharper focus, and more hunger than we’ve shown on sunnier days,” acknowledging that “in some cases, that means consolidating where investments overlap and streamlining processes.”
Google added 10,000 new employees during the second quarter, with more coming on board in the third quarter, according to the CEO. Its parent company Alphabet is 164,000 staff and recent expansion in less-than-profitable areas such as its smartphone business, wearables, and self-driving cars may expose the tech giant.
Microsoft on its part laid workers off across multiple divisions and offices on Monday. Windows owner tried to downplay the layoffs explaining that it only affected less than 1% of its 180,000 staff strength, adding that the move is typical for the calendar period rather than a reaction to impending economic crisis.
“Like all companies, we evaluate our business priorities on a regular basis, and make structural adjustments accordingly,” the company said in an emailed statement, pledging to “invest in our business and grow headcount overall in the year ahead.”
Furthermore, in addition to this week’s layoffs, the company cut back on hiring in its Windows and Office groups in May.
According to report, inflation in the US is running at a 40-year high, with consumer index at abysmally low. And more corporations are affected.
Facebook parent company, Meta has cut its new hire targets by 30%> CEO Mark Zuckerberg is quoted as saying that the social media giant is suffering “one of the worst downturns in recent history.”
