The logo for Google LLC is seen at the Google Store Chelsea in Manhattan, New York City, US, November 17, 2021. About 12,000 jobs will be cut by Google's parent Alphabet Inc. due to"a different economic reality," the company says. REUTERS/Andrew Kelly/File Photo
Shares in Mountain View, California-based Alphabet, which boosted its workforce by nearly a third through 2020 and 2021, rose 4% on Friday. They had fallen 30% in the past 12 months, echoing a 24% slump in the broader tech industry. Alphabet, long a leader in AI, is facing competition from Microsoft, which is reportedly looking to boost its stake in ChatGPT — a promising chatbot that answers queries with human-like responses.
"Ad growth has come off the boil ... Competition is also heating up, with Alphabet facing a powerful rival in TikTok, and Instagram also vying for its important YouTube viewers," Streeter said, noting that Alphabet has also racked up billions in regulatory fines. Apple, which hired more prudently through the pandemic, has held off on cuts so far. On Friday, though, website AppleInsider reported citing sources that the iPhone maker had started to lay off non-seasonal employees in its retail channel in places such as Best Buy stores.Alphabet has been working on a major AI launch, two people familiar with the matter told Reuters. One of the sources said it would take place in the spring.