LOS ANGELES, CA – JUN 9: Google CEO Sundar Pichai speaks at the Americas CEO Summit hosted by the US Chamber of Commerce on June 9, 2022 in Los Angeles, California. The second day of the CEO Summit began with the official signing of the “International Coalition to Connect Marine Protected Areas” and a speech by US President Joe Biden. (Photo by Anna Moneymaker/Getty Images)
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“Like all companies, we are not immune to economic headwinds,” Pichai wrote in a memo that was viewed by CNBC. on sunny days.
He began by acknowledging that “the uncertainty of the global economic outlook has always been at the center of attention.”
Alphabet’s shares are down 21% this year, falling along with the rest of the tech industry as investors pull back on stocks that have fueled a bull market over the past decade. Company missed analyst estimates for the first quarter and CFO Ruth Porat warned another difficult period may be ahead.
Growth in the first quarter slowed to 23% from a year earlier, compared to 34% growth in the first three months of 2021 as the economy recovered from the pandemic. However, Pichai said in a letter that the company hired 10,000 employees in the second quarter.
“Due to the progress made in hiring this year, we will be slowing down the pace of hiring until the end of the year while continuing to support our most important capabilities,” he wrote. the company will focus on hiring for engineering and other critical roles.”
A Google spokesperson declined to comment.
Google, which has historically invested heavily in research and development, will also be more careful about what it spends money on during this period of economic uncertainty.
“In some cases, this means consolidating where investments overlap and streamlining processes,” Pichai writes. In other cases, it will mean “pausing development and reallocating resources to higher priority areas,” he said.
Pichai ended the memo by telling staff that “scarcity breeds clarity” and emphasizing that “I’m glad we’re back on our feet.”