Parent of Google Alphabet will slow the pace of hiring and investment through 2023, CEO Sundar Pichai said in an email to employees on Tuesday.
“Like all businesses, we are not immune to economic headwinds,” Pichai wrote in the memo, which was seen by CNBC. “We have to be more enterprising by working with more urgency, sharper focus and more hunger than we showed on the sunnier days. »
He began by acknowledging that “the uncertain global economic outlook has been at the forefront of concerns”.
Alphabet shares have fallen 21% year-to-date, falling alongside the rest of the tech industry as investors exit the stocks that have driven the bull market of the past decade. The company missed analysts’ estimates for the first quarter and chief financial officer Ruth Porat warned another difficult period could lie ahead.
Growth in the first quarter slowed to 23% from a year earlier, compared with 34% growth in the first three months of 2021, when the economy was reopening after the pandemic. Still, Pichai said in the letter that the company hired 10,000 employees in the second quarter.
“Because of the progress made so far this year, we will slow the pace of hiring for the remainder of the year, while supporting our most important opportunities,” he wrote. “For the remainder of 2022 and 2023, the company will focus on hiring in engineering, technical and other critical roles. »
A Google spokesperson declined to comment.
Google, which has always invested heavily in research and development, will also be more specific about where it is spending money during this time of economic uncertainty.
“In some cases, that means consolidating where investments overlap and streamlining processes,” Pichai wrote. In other cases, it will mean “pausing development and redeploying resources to higher priority areas”, he said.
Pichai ended the note by telling employees that “scarcity breeds clarity” and emphasizing that “I’m thrilled that we’re once again rising to the occasion.”
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