Google to ‘slow down’ hiring, pandemic cuts PC shipments, ad budgets

Google to ‘slow down’ hiring, pandemic cuts PC shipments, ad budgets

Search giant Google will slow down on its global hiring spree due to the ongoing COVID-19 pandemic.

Alphabet Inc., Google’s parent company, gave the news to Google employees through a memo written by Google CEO Sundar Pichai.

A Bloomberg report quoted Pichai saying that the company believes that the time is right for Google to slow down the pace of its global hiring.

Google to recalibrate focus and pace

Pichai also noted that Google will be “recalibrating the focus and pace of investments” in other areas, including data centers and machines.

Pichai added that the pandemic is “hurting” the global economy and Google and its parent company Alphabet are not immune to these effects.

Pichai further wrote:

“We exist in an ecosystem of partnerships and interconnected businesses, many of whom are feeling significant pain.”

Google’s continued hiring

As of the last count, Alphabet Inc. currently employs 120,000 workers across the globe.

In 2019, Google reportedly hired 20,000 employees, a number that the company was also targeting for 2020.

But the impact of the coronavirus pandemic has put a damper to Google’s hiring binge.

Pandemic cuts PC shipments, ad budgets

PC shipments decline

The coronavirus pandemic has also affected key technology industries, including the sale of personal computers (PCs).

PC sales went down close to 10% on a year-on-year basis, according to research firm IDC.

In a report, IDC said shipments of PCs—including desktops, notebooks, and workstations—slowed down during the first quarter of 2020, with units shipped reaching 53 million.

The research firm directly attributed the slowdown to the COVID-19 pandemic, citing a “supply break” in China as a major reason in the shipment slowdown.

Despite the shipment slowdown, IDC noted that there has been an upswing in demand for PCs.

The research firm attributed this to the spike in the number of people who are now on a work-from-home arrangement and who will be needing newer, more powerful PCs.

Coronavirus causes cuts in advertising budgets

The coronavirus pandemic has a far-reaching effect on the technology industry.

For instance, internet advertising revenues have also taken a significant hit, including that of Google and Facebook.

Analysts have noted that the cancelation of major events translated to a decline in advertising budgets, which in turn affected ad revenues.

Some of these events include the 2020 Tokyo Olympics, as well as the National Basketball Association (NBA) and the National Football League (NFL) in the U.S.

In the gaming and entertainment industries, notable events such as the San Diego Comic-Con 2020 and the Electronic Entertainment Expo (E3) 2020 have been canceled due to the pandemic.

Images courtesy of PhotoMIX-Company/Pixabay, 377053/Pixabay

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