International

Google cuts 12,000 jobs as tech woes bite again

Photo: NOAH BERGER / AFP

January 20 | By AFP |

Google’s parent company Alphabet announced Friday it will cut about 12,000 jobs globally, citing a changing economic reality as it became the latest US tech giant to enact large-scale restructuring.

The layoffs come a day after Microsoft said it would reduce staff numbers by 10,000 in the coming months, following similar cuts by Facebook owner Meta, Amazon and Twitter as the tech sector girds for economic downturn.

The cuts follow a major hiring spree during the height of the coronavirus pandemic when companies scrambled to meet demand as people went online for work, school and entertainment.

“Over the past two years we’ve seen periods of dramatic growth. To match and fuel that growth, we hired for a different economic reality than the one we face today,” Alphabet CEO Sundar Pichai said in an email to employees.

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“We’ve undertaken a rigorous review across product areas and functions to ensure that our people and roles are aligned with our highest priorities as a company,” Pichai said, adding that the workforce would be reduced by around 12,000 positions.

“The roles we’re eliminating reflect the outcome of that review.”

Alphabet employed nearly 187,000 workers worldwide at the end of September 2022. The cuts represent a little over 6 percent of its total workforce.

Pichai said American employees have already been notified about the cuts while reductions in other countries will take longer due to local labor laws.

The cuts will be “across departments, functions, levels of responsibility and regions,” Pichai added.

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“The fact that these changes will impact the lives of Googlers weighs heavily on me, and I take full responsibility for the decisions that led us here.”

‘Unsustainable’

Pichai said that the cuts would “sharpen our focus” towards new priorities, pointing to the necessity of investing even more in artificial intelligence.

“Being constrained in some areas allows us to bet big on others,” he said.

Google’s world-dominating search engine has found itself under pressure with the emergence of ChatGPT, a Microsoft-backed chatbot that can generate elaborate, human-like content in just seconds.

Microsoft has said the technology will be used to strengthen Bing, the longtime rival to Google search.

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Pichai announced severance packages for US employees, who will receive at least 16 weeks of salary, their 2022 bonus, paid vacations and six months of health coverage.

He said he remained “optimistic about our ability to deliver on our mission, even on our toughest days.”

Wall Street welcomed the cuts: Alphabet shares rose by 3.5 percent in electronic trading before the stock market opened.

This tracked the effect of job cuts on other tech giants, with Meta’s share price up 35 percent since it announced 11,000 job cuts on November 9 and Amazon’s stock was up 13 percent since 18,000 people were let go earlier this month.

Analysts have said tech’s big guns had previously overspent, not seeing a slowdown on the horizon.

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Daniel Ives of Wedbush Securities said the layoffs highlight a long period of irresponsible spending across a sector basking in “hypergrowth.”

“The reality is tech stalwarts overhired at a pace that was unsustainable and now darker macro is forcing these layoffs across the tech space,” he said.

According to tech site Layoffs.fyi, nearly 194,000 industry employees have lost their jobs in the US since the beginning of 2022, not including those announced by Alphabet on Friday.

Hewlett Packard and cloud computing giant Salesforce also announced major cuts this month as rampant inflation and rising interest rates have slowed growth.

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International

EU Faces Migration Crisis After 60,000 Migrants Arrive in Spain’s Ceuta Enclave

The arrival of around 60,000 migrants from Morocco to Spain’s Ceuta enclave triggered a major European Union crisis on Friday, after Madrid described the situation as an “attack” on its territorial integrity.

At least 34 people died while attempting to reach the Spanish territory, according to local authorities.

Hundreds of migrants had begun arriving in Ceuta earlier in the week, either by swimming across the border or climbing security fences. Most of those who entered were young men and teenagers.

However, the situation escalated dramatically early Thursday morning, when the number of arrivals surged within a few hours, reaching nearly 60,000 people. According to the Spanish government, the vast majority of them — around 48,000 migrants — had returned to Morocco by Friday evening.

The episode represents one of the most serious migration crises faced by the autonomous city of Ceuta, which has a population of around 84,000 residents, in recent years.

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Several European countries responded strongly to the crisis, with Italy announcing the temporary suspension of the Schengen free movement agreement with Spain, a measure supported by Finland and Denmark.

“The temporary suspension of Schengen with Spain is a necessary decision to protect the security of our citizens and defend Europe’s borders,” Italian Foreign Minister Antonio Tajani said in a post on X.

Italy’s Interior Ministry confirmed that the country had tightened controls on maritime and air entry points from Spain, but clarified that the measure would not affect Spanish or European citizens traveling to Italy.

The additional checks will specifically target non-European citizens arriving from Spain, according to the ministry.

The measure will remain in effect for one month starting Saturday, authorities said.

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Spain’s Foreign Minister José Manuel Albares responded to the Italian announcement through a statement on X, as European governments continued discussions over the consequences of the migration crisis.

International

Chuck Schumer Unveils Proposal to Strengthen Oversight of the U.S. Presidency

U.S. Senate Democratic Leader Chuck Schumer on Thursday announced legislation to establish a federal anti-corruption office aimed at strengthening oversight of the executive branch and preventing future presidents from using the White House for personal financial gain.

Schumer said the proposal was prompted by what he described as President Donald Trump’s misuse of the presidencyto benefit his family’s business interests.

“In just 18 months, the Trump family has made more than $4 billion by exploiting the influence of the presidency,” Schumer alleged.

The New York senator also argued that the alleged corruption has had direct economic consequences for American households.

“The same corrupt practices Trump is using to pocket billions of dollars are also forcing Americans to pay, on average, $3,100 more each year because of the rising cost of living,” he said.

The legislation was introduced alongside Democratic Senators Alex Padilla, Jeff Merkley, and Andy Kim.

According to Schumer, the bill has two primary objectives: “First, to return money to the American people. Second, to ensure that no one can ever steal from them again.”

He added that the proposal would create legal mechanisms allowing citizens to seek the recovery of funds allegedly obtained through government corruption.

“The fact that Trump stole money from the American people does not make it his. Americans deserve to get that money back,” Schumer said.

Under the proposed legislation, any U.S. citizen—as well as state attorneys general acting on behalf of their residents—would be authorized to file civil lawsuits to recover funds allegedly acquired through corrupt practices by public officials.

“Our bill would empower any individual, including a state attorney general acting on behalf of the people of that state, to bring legal action to recover money stolen from the public through government corruption,” Schumer said.

The measure is expected to face debate in Congress, where Republicans and Democrats remain deeply divided over executive accountability and the scope of presidential powers.

International

Trump Administration Urges Latin America to Increase Defense Spending Against Organized Crime

The administration of U.S. President Donald Trump on Wednesday urged Latin American countries to increase investment in defense and security to strengthen the fight against organized crime and drug trafficking networks.

The appeal was made by Elbridge Colby, the U.S. Under Secretary of Defense for Policy, in an article published by Americas Quarterly. Colby argued that governments across the region should assume greater responsibility for protecting their territories from transnational criminal organizations.

“It is essential that our neighbors in the region invest more in their own defense and security. There is no reason why any country, especially those facing significant narco-terrorist threats, should spend so little on defense,” Colby wrote.

The Pentagon official described it as “absurd” that some Latin American nations allocate less than 1% of their Gross Domestic Product (GDP) to defense, although he did not identify the countries. He contrasted that with NATO members in Europe, many of which are increasing defense expenditures to 3.5% of GDP, with an additional 1.5% devoted to security-related investments.

Colby, who participated earlier this month in the Conference of Defense Ministers of the Americas in Cusco, Peru, said there is “a historic opportunity” for the United States and its regional partners to strengthen cooperation against drug trafficking and other transnational threats.

He also defended the proposed Shield of the Americas, a military partnership promoted by the Trump administration to combat organized crime and supported by several conservative governments in the region. The initiative does not include Brazil or Mexico.

In addition, Colby said the administration’s security strategy includes an updated interpretation of the Monroe Doctrine, the long-standing U.S. foreign policy principle that historically viewed Latin America as part of Washington’s sphere of influence.

“Of course, we recognize that the Monroe Doctrine is controversial in many circles. But it is also frequently misunderstood,” he said.

According to Colby, the United States is not seeking “exploitation, subordination or dependence,” but rather a region characterized by greater prosperity, stability and security.

He also stated that Washington is prepared to use “all available resources,” including the U.S. Armed Forces, to combat drug trafficking and irregular migration. Colby highlighted ongoing counternarcotics operations in the Caribbean, despite criticism from human rights organizations that have questioned some missions over allegations of extrajudicial killings in international waters.