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.
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They’ve been on a massive hiring spree in KW over the last year. It was bound to slow down eventually. Makes sense for them to focus on technical roles and slow everything else down.
I bet that not many non Ontarians know what is KW. Didn’t know there is Cambridge as third. Are there many people of German descent there?
Historically, lots of Germans. These days, very diverse.
Just recently I’ve learned that Kitchener was Berlin until they almost forcibly changed it after the WWI. That’s why I asked about German descendants. Yet some other places in Canada retained their German names and that heritage is still strong and celebrated even today.
The name Kitchener might not last either.
Still lots of Germans pride here. Biggest Oktoberfest outside of Germany. And there’s even a memorial (small) for German soldiers killed in WW2 every year.
As long as people are getting along, I don’t care what they call it
Went to KW Oktoberfest one year. Really wanted a huge beer but I think we came on a Sunday after the big party. Have to try it again and time it better.