Google Parent To Slow Down Hiring Amid Global Economic Crisis

Alphabet, Inc. GOOGL GOOG is reportedly joining a slew of companies deciding to slow down hiring or letting go of employees.

What Happened: Alphabet will slow the pace of hiring for the remainder of the year, CEO Sundar Pichai said in an internal memo to employees, according to Bloomberg.

Pichai attributed the decision to the progress in hiring the company has achieved thus far this year. He noted that the company added 10,000 employees in the second quarter alone. Commitment for third-quarter start dates is strong, partly due to the seasonal college recruiting calendar, according to him.

For the remainder of the year and for 2023, Alphabet's focus will be on engineering, technical and other critical roles to ensure the talent it hires is aligned with its long-term priorities, Pichai said.

The Alphabet chief also delved into the uncertain global macroeconomic outlook and stated that the company hasn't been immune to the economic headwinds. It viewed the challenges as opportunities to deepen its focus and invest for the long term, he added.

Related Link: Cathie Wood Says US Already In Recession, Slams The Fed For Worrying More About Legacy Than Economy

Why It's Important: The post-COVID-19 recoveries seen across the countries have been stifled by a spike in inflation, which is partly attributable to the Russia-Ukraine war. Global central banks are left with no choice but to raise interest rates to keep inflationary pressure in check, impacting growth further.

Electric vehicle maker Rivian Automotive, Inc. RIVN is reportedly cutting several hundred workers amid the downturn. Earlier, EV pioneer Tesla, Inc. TSLA embarked on trimming its workforce by 10%.

Teens-focused social media platform Snapchat's parent Snap, Inc. SNAP announced in late May that it is slowing hiring and cutting flab to tide over the inclement economic environment.

Price Action: Alphabet's Class A shares closed Tuesday's session down 1.43% at $2,280.41, according to Benzinga Pro data.