Austin American-Statesman

Google announces layoffs of recruiters

Unclear if latest rounds of cuts impacted Austin

- Kara Carlson

Tech giant Google, which has a significant presence in Austin, is cutting recruiters in its latest layoffs this year.

The New York Times reported Google laid off several hundred employees, which the American-Statesman has also confirmed.

The latest layoffs follow widescale cuts the company made in January when Google slashed 12,000 jobs, or about 6% of its nearly 187,000-person worldwide workforce. At the time, the company announced the cuts in a blog post, and a spokespers­on declined to say if Central Texas workers were impacted.

On Thursday, Google spokespers­on Courtenay Mencini confirmed to the Statesman that new layoffs affecting recruiters occurred. The company did not comment on if the layoffs hit any Austin-area employees.

“As we’ve said, we continue to invest in top engineerin­g and technical talent while also meaningful­ly slowing the pace of our overall hiring,” Mencini said. “In line with this, the volume of requests for our recruiters has gone down. In order to continue our important work to ensure we operate efficiently, we’ve made the hard decision to reduce the size of our recruiting team.”

Mencini said the company is supporting affected employees through the transition period with outplaceme­nt services and severance.

Google has had a large Austin presence since it first opened an Austin office in 2007 that is considered one of the company’s largest hubs. Google also has had plans to occupy all of a new 35-story tower being built at 601 W. Second St. As of late 2021, the company had at least 1,500 employees in Central Texas with plans to grow. The company did not give an updated Austin headcount after either recent round of layoffs.

In its latest earnings call in July, the company said it is “sharpening its focus” on artificial intelligen­ce, and, as part of this, the company is finding areas to operate more cost efficiently. The company said it was slowing expense growth and its pace of hiring and had reallocate­d a number of teams to high-priority efforts.

Google’s layoffs are among industry-wide cuts in recent years

Google’s latest layoffs come amid a rocky period for the technology industry as tech giants have laid off thousands of employees in recent years. This has included companies with big Austin-area presences such as Round Rock-based Dell Technologi­es, Austin-based Indeed, Austinbase­d Tesla, Meta and Intel.

Dan Ives, an industry analyst with Wedbush Securities, said despite Google’s latest cuts, the industry’s layoffs have mostly slowed down.

“It’s still bumpy for many tech players such as Google, but we believe 95% of the layoffs are now in the

rear-view mirror. Austin has seen an influx of talent around the tech community, and we believe the AI revolution will add jobs in Austin over the coming years including from Google,” Ives said.

It has not been immediatel­y clear how many Austin-area workers have been affected by national rounds of layoffs, because many companies have not shared local layoff numbers.

A federal law known as the Worker Adjustment and Retraining Notification, or WARN, Act requires employers to notify the local government in the event of a mass layoff or business closure under certain circumstan­ces, but many layoffs don’t meet the criteria for self-reporting under the narrow and complex regulation­s. This might include Google, which has so far not shown up in any WARN notices for Texas.

Despite the lack of concrete numbers, industry experts have said Central Texas has likely seen impacts from national layoffs in recent years.

In recent months, the latest tech cuts have included Round Rock-based Dell Technologi­es which cut an unknown number of sales positions last month, tech staffing firm Accenture, which cut several hundred jobs in two rounds of layoffs, and Babylon Health, which shut down its U.S. operations, cutting 94 at its Austin headquarte­rs.

 ?? AMERICAN-STATESMAN STAFF ?? Google had more than 1,500 employees in Austin as of late 2021, but the company has not revealed how recent rounds of layoffs might have affected its Austin-area workforce.
AMERICAN-STATESMAN STAFF Google had more than 1,500 employees in Austin as of late 2021, but the company has not revealed how recent rounds of layoffs might have affected its Austin-area workforce.

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