Google parent Alphabet will slow the pace of hiring and investments through 2023, CEO Sundar Pichai said in an email to employees on Tuesday.
“Like all companies, we’re not immune to economic headwinds,” Pichai wrote in the memo, which was viewed by CNBC. “We need to be more entrepreneurial working with greater urgency, sharper focus, and more hunger than we’ve shown on sunnier days.”
He started by acknowledging that “the uncertain global economic outlook has been top of mind.”
Alphabet shares are down 21% so far this year, falling alongside the rest of the tech industry as investors rotate out of the stocks that drove the bull market of the past decade. The company missed analyst estimates for the first quarter, and Chief Financial Officer Ruth Porat warned another rough period could be ahead.
Growth in the first quarter slowed to 23% from a year earlier, down from 34% growth in the first three months of 2021, when the economy was reopening from the pandemic. Still, Pichai said in the letter that the company has hired 10,000 employees in the second quarter.
“Because of the hiring progress achieved so far this year, we’ll be slowing the pace of hiring for the rest of the year, while still supporting our most important opportunities,” he wrote. “For the balance of 2022 and 2023, the company will focus on hiring on engineering, technical and other critical roles.”
Google CEO Pichai says company will slow hiring through 2023 in memo to employees
( Published on July 13, 2022 )