Alphabet and Google CEO Sundar Pichai stated that current global macroeconomic conditions would severely affect technology field.
The world is experiencing severe supply chain problems and raw material shortages due to the Russia-Ukraine war, China shutdown, high inflation and rising interest rates, leading to a plunge in Big Tech shares. .
In an interview with Nikkei Asia late on Tuesday, Pichai said that economic turmoil will affect the technology sector and that the Internet giant “looks forward to the long term to hire and invest”.
Pichai was quoted as saying that with recession fears growing, macroeconomic factors “will affect the tech sector”.
Shares of Alphabet are down 22% this year, as tech companies are battered by a worldwide market slump.
“Google definitely sees uncertainty ahead, like everyone else,” Pichai was quoted as saying earlier this month.
Snap, the parent company of Snapchat, is also slowing down in hiring this year.
Snap CEO Evan Spiegel told employees the company plans to hire 500 people this year, compared with 2,000 the company has hired in the past 12 months, after warning investors that the revenue of the company will not grow as quickly as expected.
Like many other companies, Snap continues to face rising inflation and interest rates, supply chain shortages and labor disruptions, changing platform policies, the impact of the war in Ukraine, and more.
“As a result, while our revenue continues to grow year over year, it is growing more slowly than we expected at this time,” the Snap CEO said.
Amid global woes, it is reported that Google, Meta, and Amazon may have to mass phase out their advertising businesses under the latest US Congressional bill targeting Big Tech.
The bipartisan bill sent Meta down about 9%, and Alphabet, Google’s parent company, down about the same amount. Shares of Amazon and Apple fell 7% and 5%, respectively.
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