Big Tech Layoffs: Google spent $700 million in compensating laid-off employees

In early January, Google laid off more than 1000 employees and spent $700 million to compensate the laid-off employees.

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| February 2, 2024 , 9:04 am
The tech giant has encountered similar issues with its AI-powered products previously as well. It had to halt its chatbot Gemini in February after it received backlash for its "woke" remarks. (Representative Image: Brett Jordan via Unsplash)
The tech giant has encountered similar issues with its AI-powered products previously as well. It had to halt its chatbot Gemini in February after it received backlash for its "woke" remarks. (Representative Image: Brett Jordan via Unsplash)

In 2023, tech giant Google laid off more than 12,000 employees. Google revealed that it had spent $2.1 billion on severance packages and other costs. In early January, the technology company laid off more than 1000 employees and went on to shell $700 million compensating the laid off employees.

Sundar Pichai, chief executive officer, went on to inform the employees to brace for more job cuts in the coming months, stated a media report.

In a memo that was shared to the Google employees, Pichai explained that the company had significant goals to achieve this year which required substantial investments. To make room for these investments, tough decisions were to be made which included job cuts and restructuring in various teams such as hardware, advertising, search, shopping, maps, policy, core engineering and YouTube.

Alphabet, the parent company of Google, reported a double digit revenue growth in the last quarter of the previous year, where a boost in revenue was witnessed from YouTube and its cloud computing unit.

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