Cutting staffing costs at the tech giant Alphabet means cutting office space, too.
The announcement by Google parent Alphabet that it will slash 6 per cent of its full-time workforce spend and spend $US500 million to cut its global office footprint cast a cloud on Friday over the tech giant’s local commitments to landlords Mirvac, GPT and Pembroke.
“We expect to incur approximately $500 million of costs related to exiting leases to align our office space with our adjusted global headcount, this will be reflected in corporate costs,” Alphabet chief financial officer Ruth Porat said.The company was engineering a broad cost reduction strategy that included “how and where we work”, Ms Porat said.Major technology companies have been cutting staff with higher interest rates and the prospect of a US recession.
None of the landlords would comment on Google’s announcement on Friday. The company’s local representatives did not respond to a request for comment about its real estate use or plans.
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