TECH NEWS | Google slows down hiring due to pandemic
Alphabet Inc., the parent company of Google, delivered the news through a memo written by Google chief executive Sundar Pichai.
Google will not be hiring more people this year due to the ongoing COVID-19 pandemic.
Alphabet Inc., the parent company of Google, delivered the news through a memo written by Google chief executive Sundar Pichai.
Pichai, in the memo wrote that the company would be re-calibrating the focus and pace of its investments in areas such as data center and machines.
The executive added that Google believed that the time was right for the Google to slow down the pace of its global hiring.
Pichai also noted that the global economy was “hurting” and that Google and its parent company were not immune to the adverse effects of the pandemic.
Google’s hiring binge
Google has been aggressive hiring in the last few years. The company reportedly hired about 20,000 employees across the globe in 2019. The plan was for Google to hire the same number for this year.
However, recent events may have put a damper on Google’e hiring binge.
Overall, Alphabet Inc. Reportedly has about 120,000 employees.
Cuts in advertising budgets
Google’s ad business was also taking a hit. It was expected that advertising sales may also be affected by the pandemic.
This was directly related to global events that were postponed or canceled due to the pandemic. In turn, advertising budgets have also been slashed significantly.
Pandemic slows down tech industry
The pandemic was also adversely affecting key technology industries.
Sales of personal computers (PCs) have declined close to 10% year-on-year.
The global sales of PCs remain a key indicator in the overall growth of the tech industry.
Research company IDC in a report said sales of desktops, notebooks, and workstations slowed down during the first quarter of 2020 and reaching only 53 million units.
IDC further noted that the COVID-19 has directly affected shipments. The research firm cited a “supply break” in China as one of the main reasons for global sales to slow down.
On a brighter note, demand for PCs actually rose as many employees needed to have newer PCs to be able to work from home. The demand for more powerful gaming PCs also rose with more and more people staying home due to ongoing lockdowns.
