Amazon, Google, Microsoft leaders remarks on layoffs
Three of the largest and most critical technology conglomerates in the world—Amazon, Google and Microsoft—all recently announced massive layoffs.
On a worldwide basis, Amazon is laying off 18,000 employees, Google is cutting 12,000 team members and Microsoft is letting go of 10,000 of its staff. These layoffs total roughly 40,000 employees being let go from the three companies which will occur mostly in the first quarter of 2023.
Amazon CEO Andy Jassy: ‘Hardest decision' he's ever made
Amazon CEO Andy Jassy said terminating 18,000 employees was the "hardest decision" he's ever been part of. "Those [layoffs] were all done with an eye toward trying to streamline our cost but still be able to invest in the things that we think really matter over the long term," said Jassy.
Amazon said it took a $640m hit—mostly in severance costs—during the quarter as part of the massive employee layoffs unveiled in January.
Google will hire in ‘priority areas' in 2023
Google CEO Sundar Pichai said the 12,000 layoffs at his company will cost roughly $2bn in severance charge during its current first quarter 2023. "We did a rigorous review across criteria and functions to ensure that our people and roles are aligned with our highest priorities as a company and we announced a reduction in our workforce," Pichai said during the company's earnings call.
However, Google's Chief Financial Officer (CFO) Ruth Porat added that her company will "continue hiring in priority areas with a particular focus on top engineering and technical talent," in 2023.
Microsoft to increase headcount by end of Q4
Microsoft CEO Satya Nadella didn't speak much regarding his company's 10,000 layoffs during Microsoft's earnings call, although Microsoft CFO Amy Hood said her company will be growing its headcount over the next six months.
"By the time that we get to the end of [fiscal fourth quarter 2023], you'll see very moderated headcount growth on a year-over-year basis in addition to some the prioritization decisions we've made," said Hood.
