Google’s parent Alphabet to lay off 12,000 workers

Google’s parent Alphabet Inc is eliminating about 12,000 jobs, or 6% of its workforce, Report informs referring to Reuters.

Alphabet, whose shares rose 3% in pre-market trading, is making the cuts just as the US company confronts a threat to its long-held perch atop the technology sector.

For years Alphabet has attracted top talent to build Google, YouTube and other products that reach billions of users, but it is now locked in competition with Microsoft Corp in a burgeoning area known as generative artificial intelligence.

The cuts at Alphabet come days after Microsoft said it would lay off 10,000 workers.

Alphabet’s job losses affect teams across the company including recruiting and some corporate functions, as well as some engineering and products teams.

The layoffs are global and impact US staff immediately.

Alphabet has already emailed affected employees, the memo said, while the process will take longer in other countries due to local employment laws and practices.

The news comes during a period of economic uncertainty as well as technological promise.