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Alphabet will cut recruitment by 50%, decision taken after a setback on the revenue front

Pichai said the company has emphasized efficiency in managing resources to invest in its "greatest opportunities for growth".

Alphabet chief executive Sundar Pichai: Alphabet chief executive Sundar Pichai said that he plans to cut recruitment in the fourth quarter of 2022 and next year i.e. 2023. The company third quarter revenue grew at the slowest pace in more than two years. This is indicating a slowdown in the online advertising market.

Sundar Pichai CEO Alphabet Image 1200x675 1
Sundar pichai

Plan for fewer recruitments in 2023

Pichai was speaking at the company earnings conference call on Tuesday, October 25.

“We are increasing our emphasis on certain product and business priorities. Compared to the third quarter, our employee recruitment will be significantly lower in the fourth quarter. For 2023, we plan to improve our balance as far as possible and will continue to limit growth in operating expenses.”

12,765 people added in the third quarter

Google parent Alphabet said it added 12,765 people in the third quarter, of which 2,600 were due to the acquisition of Mandiant. With this its worldwide workforce reached the level of 1,86,779.

Recruitment will continue on important posts

Alphabet CFO Ruth Porat said during the conference call that there will be less than half the hiring in the fourth quarter compared to the third quarter.

However, the company will continue to recruit “key positions, especially top engineering and technical talent.”

Pichai said the company has focused on efficiency while managing resources to invest in its “biggest growth opportunities”.

Also, during the last quarter, the distance from low priority works has increased. This includes shutting down game streaming service Stadia and canceling its next Pixelbook laptop, as well as disbanding the team building the device.

Pichai said that talent is the most valuable resource. So, we are making sure that whoever we bring to the company is the most important person to the company.

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