Google to Slow Hiring, 'Reevaluate' Investments For Rest of 2020: Report

In a memo, CEO Sundar Pichai said that Google's business has been affected by the global economic slowdown and pledged to take a more critical look at investments and hiring.
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Google is looking to cut costs in response to the coronavirus pandemic, according to a company memo. 

Bloomberg reported that Sundar Pichai, CEO of Alphabet  (GOOGL) - Get Report and Google, sent an on Wednesday notifying staff that the company will slow hiring for the rest of the year and make other strategic changes. 

Google is “recalibrating the focus and pace of our investments in areas like data centers and machines, and non business essential marketing and travel,” the email read. 

Google will also "take a more critical look at the pace of hiring" for the rest of the year. Alphabet had about 119,000 employees at the end of last year, and had been planning to hire about 20,000 new employees this year.

Alphabet shares are down about 8% year to date. 

The memo added that work-from-home procedures made it more difficult to properly train and onboard new employees. 

While the memo didn't go into much specific detail around how the pandemic has affected Google's financial results, Pichai wrote that '"the entire global economy is hurting, and Google and Alphabet are not immune to the effects of this global pandemic."

Economic disruptions tied to the pandemic have led to a drop in advertising demand, and Alphabet's ad-heavy revenue model is expected to take a hit this year.

Alphabet is expected to report its full first quarter financial results at the beginning of May. 

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