Google parent company Alphabet announced on January 20th that it will be cutting approximately 6% of its global workforce or 12,000 jobs. CEO Sundar Pichai made the announcement in an email to employees, taking full responsibility for the decisions that led to the layoffs.
To support the affected employees, Alphabet is offering a number of benefits including accelerated vesting of Google Stock Units (GSU) and a severance package starting at 16 weeks of salary plus an additional two weeks for each year of employment with the company. In addition, the company will pay employees in the US for the entire notice period, which is a minimum of 60 days.
For those who are losing their jobs, Alphabet will also provide six months of healthcare, job placement assistance, and immigration support, as well as paying out 2022 bonuses and unused vacation time. The company will also be supporting staff outside of the US in accordance with regional customs.
A company spokesperson also announced that eligible employees will be receiving an advance bonus of 80% upfront and the remaining 20% over the course of several months. Additionally, as part of the transition to a new performance management system, Google will be deferring a portion of its employees’ year-end bonuses.
Pichai also acknowledged that the news would be difficult to hear, and gave employees the option to work from home if they needed to process the news. He emphasized that the company would be doing everything it could to support those affected by the job cuts as they look for their next opportunity.