Twelve thousand employees from Google's parent company Alphabet join the other tens of thousands recently cut from companies across Silicon Valley as they weigh budget decisions for 2023.
This comes just a matter of months removed from the tech sector hiring 200,000 plus employees, more than double what we saw in the previous decade according to Banafa.
"During the pandemic, Google increased the number of employees by about 30%. What they're doing is, they're doing what I call, 'the great reset'," Banafa said. "They're going to go back to the 2019 era. And even with the cuts we have, we're not even close to that. We're still above that level." Banafa says these cuts have a trickle-down effect because thousands of employees now have less money to spend, leading to cuts in other industries. But this is not permanent.Employees are being hired back at other tech companies or in other tech roles in non-tech companies.
So this may be a temporary downswing, but Banafa says this isn't 2008 or the "Dot Com, Dot Gone" era and it won't slow down the prominence of Silicon Valley. "We have hundreds and hundreds of companies in Silicon Valley and Silicon Valley has never been defined by one company," Banafa said. "It's just defined by the product and the innovation."
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