Google and Microsoft's Korean Subsidiaries Begin Downsizing as Part of Global Restructuring

According to a report from the Korean Economic Daily, Google and Microsoft's Korean subsidiaries have begun to downsize in order to comply with the large-scale restructuring of global tech companies.

Sources within the information and communication technology sector have revealed that Google Korea recently sent an email to targeted employees regarding layoffs, offering compensation packages based on individual circumstances.

"If the recommended resignation proposal is accepted within the specified timeframe, it will provide a higher value of compensation," said a Google Korea insider. "The main point of the offer is 6 to 15 months of salary as compensation, depending on the position and years of service." As of the end of last year, Google had approximately 700 employees in Seoul. Based on the 6% downsizing ratio announced in January by its California-based headquarters in Mountain View, approximately 40 employees in Korea will undergo restructuring.

Microsoft Korea also began restructuring last month, and approximately 20 employees received compensation packages through interviews from last month to this month, including up to 24 months of salary as compensation, depending on years of service. As of the end of last year, Microsoft Korea had 475 employees.

On January 18th, Google's rival Microsoft announced that it would downsize 10,000 people by the end of the third quarter of the 2023 fiscal year.

The downsizing of tech companies like Google and Microsoft may have an impact on the demand for certain components, and it is important to stay informed and prepared to respond to any changes.