Google Parent to Slow Pace of Hiring as Slump Takes Hold -- WSJ
April 17 2020 - 2:02AM
Dow Jones News
By Rob Copeland
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (April 17, 2020).
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 17, 2020 02:47 ET (06:47 GMT)
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