GOOG Alphabet Inc

By Rob Copeland 

Google's parent company said it would slow hiring as a result of the coronavirus pandemic, in a sign that even the largest corporations are recalibrating to prepare for a recession.

Google, a unit of Alphabet Inc., and other tech giants have added hundreds of thousands of employees in recent years, even opportunistically scooping up talent amid the pandemic that has ravaged the global economy.

In a memo to employees on Wednesday, Alphabet CEO Sundar Pichai said the company would dial back.

"We believe now is the time to significantly slow down the pace of hiring, while maintaining momentum in a small number of strategic areas where users and businesses rely on Google for ongoing support, and where our growth is critical to their success," Mr. Pichai said in the memo.

On the spread of the virus, Mr. Pichai wrote, "we couldn't have imagined then how much could change, and how quickly."

The memo was earlier reported by Bloomberg. A Google spokeswoman confirmed its authenticity, adding that the company would continue "onboarding the many people who've been hired but haven't started yet."

Alphabet has nearly 119,000 employees globally, according to public filings.

Mr. Pichai, expanding on efforts the company earlier disclosed, said the search giant has committed more than $800 million in grants, loans and ad credits to help small businesses and others affected by the pandemic. It is also joining with rival Apple Inc. to build software that would alert people if they were in contact with someone infected with the coronavirus.

Mr. Pichai made clear that the company doesn't expect to be insulated entirely from the global pandemic.

"Just like the 2008 financial crisis, the entire global economy is hurting, and Google and Alphabet are not immune to the effects of this global pandemic. We exist in an ecosystem of partnerships and interconnected businesses, many of whom are feeling significant pain," he said. "The clear lesson from 2008 is that preparing early is key to weathering the storm and emerging in a position to continue long-term growth, as we have done over the past decade."

Write to Rob Copeland at rob.copeland@wsj.com

(END) Dow Jones Newswires

April 16, 2020 12:00 ET (16:00 GMT)

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