Tag: Jobs

Alphabet — Google’s corporate parent — to cut 12,000 jobs

Google’s parent Alphabet Inc. is eliminating about 12,000 jobs, or six per cent of its workforce, it said in a staff memo Friday, as the technology sector reels from layoffs and companies stake their futures on artificial intelligence (AI).

The cuts come at a delicate moment for the U.S. company, which has long been the leader in key areas of AI research.

Alphabet now faces a challenge from Microsoft Corp. in a branch of tech that can, for instance, create virtually any content a user can think up and type in a text box.

Microsoft this week said recession worries were forcing it to shed 10,000 jobs, less than five per cent of its workforce, and it would focus on imbuing its products with more AI going forward — a point Alphabet’s CEO Sundar Pichai echoed in the memo.

Alphabet faced “a different economic reality” from the past two years when it rapidly expanded its workforce, decisions for which Pichai said he took “full responsibility.”

Pichai became Alphabet CEO in 2019.

Still, he said, Google was gearing up “to share some entirely new experiences for users, developers and businesses,” and the company has “a substantial opportunity in front of us with AI across our products.”

Major launch

The company has been working on a major AI launch, two people familiar with the matter told Reuters. One of the sources said it would take place in the spring of this year.

Susannah Streeter, an analyst with Hargreaves Lansdown, said Alphabet’s advertising business, which underpins Google’s search engine and YouTube, was not immune to economic turbulence.

“Ad growth has come off the boil, a sharp contrast from the busy days of the post-pandemic reopening, which saw a surge in consumer spending,” she said. The company faces competitive and regulatory threats as well,

Tuck School of Business | Slaughter & Rees Report: The Good Jobs America Needs Are Global Jobs

Happy new year (and, for those of you in China or who are celebrating it elsewhere, happy Year of the Rabbit). Because of rampant inflation, 2022 was one of the worst years in decades for falling real incomes across the globe.

Here in America, real average weekly earnings of all U.S. workers fell 3.1 percent in 2022. A central policy challenge in the year ahead is not just creating jobs. It is creating good jobs, i.e., jobs with high and rising incomes.

How to meet this challenge? Just before the winter holidays, the U.S. Bureau of Economic Analysis released new data that show the way forward. In 2020, a certain set of U.S. companies employed 28.4 million workers in America at an average annual compensation of $84,925—about 20 percent higher than the average for the rest of the U.S. private sector.

Which companies? The U.S. parents of U.S.-headquartered multinational companies. U.S. multinationals have long been among America’s strongest firms. Although they comprise far less than 1 percent of U.S. companies, in 2020 their U.S. parents accounted for 23.1 percent of all private-sector jobs, 38.5 percent of investment in plant and equipment, 46.4 percent of exports of goods, and a remarkable 72 percent of business spending on research and development.

Despite the common allegation that multinationals simply ‘export jobs’ out of America, research consistently shows that expansion abroad by these firms has tended to complement—not substitute for—their U.S. operations.

Despite the common allegation that multinationals simply “export jobs” out of America, research consistently shows that expansion abroad by these firms has tended to complement—not substitute for—their U.S. operations. More investment and employment abroad have tended to create more American investment and jobs as well. From 1988 to 2020, employment in foreign