Google to Cut Back on Hiring Due to ‘Uncertain’ Economy, Says Memo
Google is “slowing down the pace of hiring for the rest of the year” as the world starts to feel the foreshocks of a predicted global “stagflation,” company CEO Sundar Pichai told employees in an internal memo sent Tuesday (via The Verge).
Pichai clarified that the move does not constitute a hiring freeze. Google will still bring on new talent for “engineering, technical and other critical roles.”
However, he said the company will have to “be more entrepreneurial” moving forward if it hopes to weather “the uncertain global economic outlook.” Pichai added Google must now work with “greater urgency, sharper focus, and more hunger than we’ve shown on sunnier days.”
The slowdown will impact more than just Google’s hiring habits. Pichai’s memo said the company will also be “pausing development and re-deploying resources to higher priority areas” as needed.
While Google won’t have to downsize by virtue of being an industry juggernaut, it must still rein in spending. “We’re not immune to economic headwinds,” the Google CEO said. It would appear that no company (or industry) is.
Rising raw material prices and geopolitical woes have affected everything from consumer electronics to cars. Tesla CEO Elon Musk announced a 10% cut in salaried staff last month, saying he had a “super bad feeling” about the economy. Other automakers are preparing for layoffs as well.
Despite the majority of tech companies posting profits and reporting record quarters, industry veterans are predicting a drop in demand for consumer electronics and adjusting investment accordingly. Where a global chip shortage hindered the industry for most of the pandemic, sales now face declining demand as the next challenge.