Billionaire Hedge Fund Investor Urges Alphabet To Cut Costs: 'No Justification' For Salaries That Are 'Too High'
ForbesNov 28, 2022
The Facts
On Friday, Google's parent company Alphabet announced that it will be cutting roughly 12k jobs, or 6% of its work force.
This is set to be the company's largest-ever round of layoffs, and follows job cuts at other technology companies in recent months, including at Microsoft, Amazon, and Meta.
The Spin
Establishment-critical narrative
The recent layoffs in the tech sector highlight these companies' irresponsible hypergrowth. Following the pandemic, tech companies like Alphabet, Meta, and Microsoft hired in great numbers at an unsustainable pace and now a change in the economy is causing them to layoff many employees to rectify their mistakes.
Pro-establishment narrative
There are many reasons why the company needs to cut jobs, not just post-pandemic over-hiring. Ad growth has slowed, and the company is facing competitive and regulatory threats. The tech sector is not immune to economic turbulence and recent recession fears are impacting many industries. While these layoffs are unfortunate, they are not entirely the company's fault.
