In a recent all-hands meeting, Google CEO Sundar Pichai defended the decision to lay off 12,000 employees, constituting 6% of Alphabet's workforce. Pichai acknowledged the adverse impact on morale and admitted that the layoffs could have been handled better.
Responding to an employee's query about the decision's impact on growth, profit and morale, Pichai emphasized the necessity of the move, stating that not acting would have led to more significant challenges.
He explained that the layoffs were crucial for the company to adapt to economic shifts and invest in critical areas, preventing a future overhang on Google's capacity to navigate change.