Alphabet and Google CEO Sundar Pichai said the current global macroeconomic conditions will severely affect technology sector.
The world is going through severe supply chain issues and shortage of raw materials due to the Russian-Ukrainian war, lockdowns in China, high inflation and rising interest rates, resulting in a fall in big tech stocks.
In an interview with Nikkei Asia on Tuesday evening, Pichai said economic instability will affect the tech sector and the internet giant is “looking long-term for hiring and investing.”
With growing fears of a recession, macroeconomic factors “will affect the tech sector,” Pichai said.
Alphabet shares are down 22% this year as tech companies have been hit hard by the global market slump.
“Google definitely sees the uncertainty ahead of us, like everyone else,” Pichai said earlier this month.
Snap, Snapchat’s parent company, is also slowing its hiring this year.
Snap CEO Evan Spiegel told employees the company plans to hire 500 people this year, up from 2,000 over the past 12 months, after warning investors its revenue won’t grow as fast as foreseen.
Like many companies, Snap continues to deal with rising inflation and interest rates, supply chain shortages and labor disruptions, platform policy changes, impact of the war in Ukraine, etc.
“As a result, while our revenue continues to grow year over year, it is growing more slowly than expected at this time,” the Snap CEO said.
Amid the global woes, it has been reported that Google, Meta and Amazon may have to divest much of their ad businesses under the latest US Congressional bill targeting Big Tech.
The bipartisan bill sent Meta down about 9%, and Alphabet, Google’s parent company, fell by the same amount. Shares of Amazon and Apple fell 7% and 5% respectively.
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