Google hasn’t joined the fray to the same extent, but that seems set to change in 2023 as well, at least according to one analyst. Here’s the latest on the tech industry’s gloomy near future.
Will Google Cut Jobs in 2023?
Analysts think Google’s parent company Alphabet will roll out the chopping block as well in the new year. Or, more precisely, they think that Google can’t not cut jobs. Bernstein analyst Mark Shmulik recently sent a client note saying as much. Shmulik’s summary: That head count growth adds up to 12,000 new employees in just the third quarter of this year. Sure, Google’s a massive company, but this growth makes it 24% more massive than the same time last year. Revenues only grew 6% across the same time period, so it’s no wonder that Shmulik isn’t the only one calling for big layoffs: A big Alphabet investor, TCI Fund Management, wants them as well. So far Google has simply said it will slow its hiring growth but hasn’t announced job cuts in this year or the next.
The Tech Slowdown Is Industry-Wide
Facebook owner Meta announced this month that they’re cutting 10% of its company workforce, which is around 11,000 positions. Companies including Salesforce, Zendesk, and RingCentral all cut hundreds of staffers this month, too. And you may have heard something about the 1,000s of workers cut loose from Twitter in recent weeks. In many cases, the reasons cited are a looming recession, although reducing the strength of labor amid rising interest in unions may also factor in. Whatever the case, the tech industry is tightening its belt, and it’ll keep getting a little tighter in the next year, too.
