LOS ANGELES, CALIFORNIA – JUNE 09: Google CEO Sundar Pichai speaks at a panel on the CEO Summit of the Americas hosted by the U.S. Chamber of Commerce on June 09, 2022 in Los Angeles, California. The CEO Summit entered its second day of occasions with a proper signing for the “Worldwide Coalition to Join Marine Protected Areas” and a speech from U.S. President Joe Biden. (Photograph by Anna Moneymaker/Getty Photos)
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“Like all firms, we’re not proof against financial headwinds,” Pichai wrote within the memo, which was considered by CNBC. “We have to be extra entrepreneurial working with higher urgency, sharper focus, and extra starvation than we’ve proven on sunnier days.”
He began by acknowledging that “the unsure international financial outlook has been high of thoughts.”
Alphabet shares are down 21% thus far this yr, falling alongside the remainder of the tech trade as buyers rotate out of the shares that drove the bull market of the previous decade. The firm missed analyst estimates for the primary quarter, and Chief Monetary Officer Ruth Porat warned one other tough interval could possibly be forward.
Development within the first quarter slowed to 23% from a yr earlier, down from 34% progress within the first three months of 2021, when the financial system was reopening from the pandemic. Nonetheless, Pichai stated within the letter that the corporate has employed 10,000 staff within the second quarter.
“Due to the hiring progress achieved thus far this yr, we’ll be slowing the tempo of hiring for the remainder of the yr, whereas nonetheless supporting our most essential alternatives,” he wrote. “For the steadiness of 2022 and 2023, the corporate will deal with hiring on engineering, technical and different essential roles.”
A Google spokesperson declined to remark.
Google, which has traditionally invested closely in analysis and improvement, may even be extra explicit about the place it spends cash throughout this era of financial uncertainty.
“In some instances, meaning consolidating the place investments overlap and streamlining processes,” Pichai wrote. In different situations, it is going to imply “pausing improvement and re-deploying sources to greater precedence areas,” he stated.
Pichai ended the be aware by telling staff that “shortage breeds readability” and emphasizing that “I’m excited for us to rise to the second once more.”