On Tuesday, in an internal memo, Alphabet CEO Sundar Pichai revealed that Google will slow the hiring pace in 2023. Pichai wrote that “we’re not immune to economic headwinds.” He urged the employees to work with “greater urgency, sharper focus, and more hunger” than ever before.
Furthermore, shares of Alphabet dropped 21% in 2022. The company’s state is similar to others in the tech industry. In addition, Alphabet missed analyst estimates for the first quarter. Following that, Ruth Porat, the CFO (Chief Financial Officer), warned that there’s a possibility of another rough period soon.
Moreover, when the world reopened after the pandemic and the economy resumed in 2021, the growth of Alphabet was 34% in the first three months. However, the growth plummeted to 23% in the first quarter of this year. But, in the second quarter, the company from hired 10,000 employees. Pichai states in the memo that due to the “hiring progress achieved so far this year,” Alphabet will slow the pace for the rest of the year. However, the company will still support its most significant opportunities. “For the balance of 2022 and 2023, the company will focus on hiring on engineering, technical and other critical roles,” Pichai wrote.
Additionally, Google has always invested more time and money in research and development. So, the company will be specific about spending money during this uncertain economic time. Pichai said this means “consolidating where investments overlap and streamlining processes.” Or, it might mean “pausing development” and applying resources to “higher priority areas.”
Alphabet CEO Pichai ended the memo by saying that “scarcity breeds clarity” and that he’s excited for Google and its employees to “rise to the moment again.”
On another note, Google seems to have followed other companies in slowing the hiring process in these tough economic times. That said, Meta also sent an internal memo warning employees of “serious times and fierce headwinds.” As a result, the company is freezing hiring for some of its teams. In addition, even Snap and Spotify are slowing the pace of hiring. Lastly, Netflix, Twitter, and GameStop plan to lay off employees. And Uber is having serious thoughts about cutting down on costs.