Alphabet Inc CEO Sundar Pichai reportedly told his employees that the company will “significantly” slow down the hiring amid uncertainty due to coronavirus pandemic. In an email to Alphabet employees, first published by Bloomberg, Pichai said that the company is only a quarter of the way through 2020 and has already been the “most unusual year in memory”.
Recalling the global financial crisis of 2008, Pichai said that Alphabet and Google are not immune to the effects of the pandemic since the entire global economy is hurting. He added that the way forward is preparing early to weather the storm and continue long-term growth, in accordance with the lesson learnt from the 2008 crisis.
According to media reports, Google confirmed the veracity of the internal memo and said that the company will be slowing down the pace of hiring while maintaining momentum in a small number of strategic areas. It assured that the company will continue onboarding those who have been hired but haven’t started yet.
Google’s top executive emphasised the need to carefully prioritise the hiring of employees who will address the company’s “greatest user and business needs”. He also asked the employees to share additional ideas, if any, to free up or redeploy resources to make the company more efficient while supporting the priorities.
The latest communication of the tech-giant with its employees indicates a deep global recession which has already been highlighted by the International Monetary Fund (IMF). During a press briefing, IMF chief economist Gita Gopinath said that the pandemic has cut global output by three per cent and warned that it could get worse.
IMF Managing Director Kristalina Georgieva said during virtual 2020 Spring Meetings that the measures of fight COVID-19 are affecting billions of people and stopping economies in their tracks. She added that the IMF is anticipating the worst economic downturn since the Great Depression with global forecast falling to -3 per cent in 2020.