Google Lays off Hundreds of Employees in Its Recruitment Department
Google is expected to cut down on hiring for several quarters in the upcoming years.
- Google has conducted a new round of layoffs, cutting hundreds of positions in its recruitment department.
- Employers across the U.S. continue to restructure teams amid fears of a looming recession.
Google has cut hundreds of jobs in a new round of layoffs, this time in its recruitment division. The move comes as the company looks to minimize hiring for several upcoming quarters. Silicon Valley, in general, has seen several layoffs as companies seek cost-cutting measures in light of a looming recession. Other companies that made significant layoffs include T-Mobile, Microsoft, and Meta.
This is not the first time Google has made major cuts in its workforce. In January this year, the tech giant cut 12,000 jobs, accounting for approximately 6% of its global workforce. This was despite a hiring boom in 2021, where the company took in over 50,000 employees.
Struggles with its core advertising business are also likely a factor behind the job cuts. Even as the company’s Search and YouTube ad revenue recovers, Google has witnessed a 15% year-over-year growth.
See More: Apple and Qualcomm Extend the Status Quo on 5G Modems Supply
Google Antitrust Battle Begins
Google’s troubles do not end with the layoffs. The company is now in the midst of a major antitrust lawsuit. The Department of Justice (DoJ) has laid accusations stating that Google’s search engine has created a near-monopolistic market with over 90% market share, which can be attributed to illegal practices.
According to the U.S. government, Google has been paying Apple and other manufacturers approximately $10 billion yearly to protect its market share by making it the default product on phones and browsers. The case hinges on the government’s argument that Google’s search engine has dominated the market due to unfair exclusivity contracts with mobile operators, device manufacturers, and others.
The government has also argued that Google has manipulated auctions it holds for advertisers to increase prices. Google has also allegedly taken measures to protect data about payouts to companies like Apple, indicating that the company has knowingly resorted to anti-competitive practices.
All claims so far have been refuted by Google. The company’s lawyer has argued that the success of the search engine could be traced back to the company’s investments in innovation and quality over the years, stating that the court could not intervene in markets to stop Google from competing. They have also argued that Google does not restrict users from competitor products and that dissatisfied users could easily leave with a few clicks if they wanted.
The trial is expected to go on for ten weeks. The judge, Amit Mehta, will have to determine if Google has violated antitrust laws and scrutinize how the company manages its search and advertising businesses. If Google is found guilty, the court will also have to find a suitable resolution for the issue.
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