A man walks through Google offices on January 25, 2023 in New York City.
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Google is indicating to ex-staffers, who got laid off while on maternity and medical leave, that they won’t get paid for all of their remaining time off, according to former employees and written correspondence shared with CNBC.
More than 100 former workers have organized a group they call “Laid off on Leave.” They’re asking executives to pay them for the weeks and months they were approved to take off before the job cuts were announced in January. Those who spoke with CNBC said they’ve been told they’ll only receive pay through their designated end date, along with standard severance.
The group of former employees sent a letter to executives, including CEO Sundar Pichai and Chief People Officer Fiona Cicconi, on three separate occasions, most recently on March 9, without receiving a response. The group includes people who were approved for or are currently on maternity leave, baby bonding leave, caregiver’s leave, medical leave and personal leave.
Early last year, Google announced it would be increasing parental leave for full-time employees to 18 weeks for all parents and 24 weeks for birth parents. Cicconi said at the time that the company wanted to offer “extraordinary benefits” so employees could “spend more time with their new baby, look after a sick loved one or take care of their own wellbeing.”
But Google parent Alphabet has since entered its most severe era of cost cuts in its almost two decades on the public market. The company said in January that it was eliminating 12,000 jobs, representing about 6% of its workforce, to reckon with slowing sales growth following an extended period of expansion in the tech sector.
Pichai said U.S.-based employees would receive 16 weeks of severance pay plus two weeks for each additional year they worked at Google. The company also said it would include paid time off in the severance.
Those who were laid off while on medical leave are urging Pichai and other leaders to provide immediate clarity on the matter because of an upcoming deadline: official severance terms are expected to arrive as soon as March 31.
The Laid off on Leave group sent its first email to executives in January, and shared specific examples of Google employees impacted by the job cuts while on their previously approved leave.
One woman said she was laid off a week after her maternity leave was approved. Another said she received notice while on maternity leave, a week before she was due to give birth.
Some discussed the matter publicly.
“Exactly a week after receiving the text and sharing the exciting news that my maternity leave was approved, I got the already widely talked-about email letting me know that I was among the 12k terminated,” a Google program manager wrote on LinkedIn. “Easy target? Maybe.”
Another longtime employee, Kate Howells, posted that she gave birth just before receiving notice.
“On 1/20/23 at 7:05 am while in the hospital bed holding my hours-old newborn I learned that I was part of the #thegolden12K of Googlers who had been laid off,” Howells wrote. “I was a Googler for 9.5 years.”
A Google spokesperson told CNBC in an email that departing employees are eligible for stock and salary for their “60+ day notice period” and reiterated Pichai’s memo regarding 16 weeks of pay and an additional two weeks for every year of service.
The company didn’t address whether it would cover full medical leave on top of the severance payout.
“As we shared with impacted employees, we benchmarked this package to ensure the care we’re providing compares favorably with other companies, including for Googlers on leave,” the spokesperson said.
‘Good faith effort’
Multiple people whose jobs were terminated told CNBC their access to doctors and specialists through Google’s on-site One Medical facility was also cut off the day of the layoff notification. That disrupted treatment that was ongoing at the time, they said. A laid-off senior software engineer said he lost in-person access to his primary care doctor of three years.
Some ex-employees said they were given the option to continue seeing their doctors virtually but were otherwise advised to find replacements.
The group of laid-off workers highlighted the fact that this is taking place during Women’s History Month.
“Google is currently showcasing its workplace commitments and its participation in Women’s History Month through various products and services campaigns,” the group wrote in an email sent to Google executives. “We agree with you: it’s very importantto recognize the hardships that still disproportionately affect women inside the workplace.”
Google CEO Sundar Pichai speaks at a panel at the CEO Summit of the Americas hosted by the U.S. Chamber of Commerce on June 09, 2022 in Los Angeles, California.
Anna Moneymaker | Getty Images
They said the company still has the opportunity to fix the problem.
“We respectfully request a good faith effort to honor the terms of our original parental and/or disability leave arrangements for all leaves that were approved as of January 20, 2023,” the group wrote.
At an informal event held by Google alumni group Xoogler in January, more than 50 laid-off workers gathered for mutual comfort and to seek answers. Kushagra Shrivastava, one of the organizers, recalled to CNBC the story of a mother who spoke up at the event to say she “was laid off while trying to care for a three-month old, and that was pretty tough to hear.”
It’s not just new mothers and those who are expecting soon who find themselves in a bind. The email to management also mentions the challenges faced by pregnant women who hadn’t yet formally requested a leave of absence and as a result, “will have an even longer road to securing new roles given the points they’re at in their pregnancies.”
At a new employer, those women would have to wait a year for the benefits from the Family and Medical Leave Act to kick in, “rendering it impossible for expectant and new mothers to leverage the FMLA they paid for to the detriment of their health and their baby’s wellbeing,” the group said. “Parental and medical leaves present an extraordinary burden on laid off Googlers’ ability to seek immediate new employment.”
The group’s letter pointed to companies like Amazon, which have said they would pay out the remainder of leave time in addition to severance packages.
Employees who tried to communicate with Google about the matter said they’d lost access to the internal system and could only fill out a form on a separate short-term portal. Some said they received responses a week after their inquiry, and each said they got what appeared to be an automated response, reiterating their employment end date or directing them to reapply for another position.
In an email to CNBC, the group of laid-off workers said Pichai was showing much greater concern for the company’s effort to keep apace in the battle for artificial intelligence supremacy than it was for taking care of longtime staffers who were in need of help.
“When Google CEO Sundar Pichai announced layoffs, he mentioned the company’s commitment to AI three times, but never once mentioned Google’s commitment to accessibility,” the group wrote. “This matters deeply because accessibility is part of the company’s actual mission. This clearly calls for a re-centering of priorities. It’s unsurprising that through a bungled demo just days after laying us off, Google showed they’re indeed not leading the way in AI. However, the good news is that an incredible opportunity remains to be an accessibility leader in the treatment of laid off workers.”
Quality time with baby
The group also reminded Google leadership about the significance of parental benefits and the company’s intention when it updated its plan. In particular, it said parents should have quality time their newborns without the stress of having to think about work and rush back to the office.
“Google formed their parental benefits with this in mind, emphasizing the need for parents to have time off to recover and bond with their new babies,” the email to execs said.
Some said they’re hopeful this issue is just an oversight and executives will take corrective action because the company promised them a certain amount of fully paid time off.
“Granting a payout of full remaining leave days for scheduled and upcoming leaves would be notably in line with Google’s current policy of payment for accumulated employee vacation time (PTO) in this round of layoffs,” the letter said.
The group referenced Google’s original core value, “Don’t be evil,” in asking for leadership to respond promptly.
“We invite the C-Suite to iterate with us like Googlers do,” the laid-off workers wrote to CNBC. “To come up with something more accessible and in line with the Diversity, Equity, and Inclusion workplace commitments the company touts.”
The X logo appears on a phone, and the xAI logo is displayed on a laptop in Krakow, Poland, on April 1, 2025. (Photo by Klaudia Radecka/NurPhoto via Getty Images)
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Elon Musk‘s xAI Holdings is in discussions with investors to raise about $20 billion, Bloomberg News reported Friday, citing people familiar with the matter.
The funding would value the company at over $120 billion, according to the report.
Musk was looking to assign “proper value” to xAI, sources told CNBC’s David Faber earlier this month. The remarks were made during a call with xAI investors, sources familiar with the matter told Faber. The Tesla CEO at that time didn’t explicitly mention any upcoming funding round, but the sources suggested xAI was preparing for a substantial capital raise in the near future.
The funding amount could be more than $20 billion as the exact figure had not been decided, the Bloomberg report added.
Artificial intelligence startup xAI didn’t immediately respond to a CNBC request for comment outside of U.S. business hours.
The AI firm last month acquired X in an all-stock deal that valued xAI at $80 billion and the social media platform at $33 billion.
“xAI and X’s futures are intertwined. Today, we officially take the step to combine the data, models, compute, distribution and talent,” Musk said on X, announcing the deal. “This combination will unlock immense potential by blending xAI’s advanced AI capability and expertise with X’s massive reach.”
Alphabet CEO Sundar Pichai during the Google I/O developers conference in Mountain View, California, on May 10, 2023.
David Paul Morris | Bloomberg | Getty Images
Alphabet‘s stock gained 3% Friday after signaling strong growth in its search and advertising businesses amid a competitive artificial intelligence environment and uncertain macro backdrop.
“GOOGL‘s pace of GenAI product roll-out is accelerating with multiple encouraging signals,” wrote Morgan Stanley‘s Brian Nowak. “Macro uncertainty still exists but we remain [overweight] given GOOGL’s still strong relative position and improving pace of GenAI enabled product roll-out.”
The search giant posted earnings of $2.81 per share on $90.23 billion in revenues. That topped the $89.12 billion in sales and $2.01 in EPS expected by LSEG analysts. Revenues grew 12% year-over-year and ahead of the 10% anticipated by Wall Street.
Net income rose 46% to $34.54 billion, or $2.81 per share. That’s up from $23.66 billion, or $1.89 per share, in the year-ago period. Alphabet said the figure included $8 billion in unrealized gains on its nonmarketable equity securities connected to its investment in a private company.
Adjusted earnings, excluding that gain, were $2.27 per share, according to LSEG, and topped analyst expectations.
Read more CNBC tech news
Alphabet shares have pulled back about 16% this year as it battles volatility spurred by mounting trade war fears and worries that President Donald Trump‘s tariffs could crush the global economy. That would make it more difficult for Alphabet to potentially acquire infrastructure for data centers powering AI models as it faces off against competitors such as OpenAI and Anthropic to develop largely language models.
During Thursday’s call with investors, Alphabet suggested that it’s too soon to tally the total impact of tariffs. However, Google’s business chief Philipp Schindler said that ending the de minimis trade exemption in May, which created a loophole benefitting many Chinese e-commerce retailers, could create a “slight headwind” for the company’s ads business, specifically in the Asia-Pacific region. The loophole allows shipments under $800 to come into the U.S. duty-free.
Despite this backdrop, Alphabet showed steady growth in its advertising and search business, reporting $66.89 billion in revenues for its advertising unit. That reflected 8.5% growth from the year-ago period. The company reported $8.93 billion in advertising revenue for its YouTube business, shy of an $8.97 billion estimate from StreetAccount.
Alphabet’s “Search and other” unit rose 9.8% to $50.7 billion, up from $46.16 billion last year. The company said that its AI Overviews tool used in its Google search results page has accumulated 1.5 billion monthly users from a billion in October.
Bank of America analyst Justin Post said that Wall Street is underestimating the upside potential and “monetization ramp” from this tool and cloud demand fueled by AI.
“The strong 1Q search performance, along with constructive comments on Gemini [large language model] performance and [AI Overviews] adoption could help alleviate some investor concerns on AI competition,” Post wrote in a note.
An Amazon employee works to fulfill same-day orders during Cyber Monday, one of the company’s busiest days at an Amazon fulfillment center on December 2, 2024 in Orlando, Florida.
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For 10 years, Aaron Cordovez has been selling kitchen appliances on Amazon. Now he’s in a bind, because most of his products are manufactured in China.
Cordovez, co-founder of Zulay Kitchen, said his company is moving “as fast as we can” to move production to India, Mexico and other markets, where tariffs are increasing under President Donald Trump, but are mild compared with the levies imposed on goods from China. That process will likely take at least a year or two to complete, he said.
“We’re making our inventory last as long as we can,” Cordovez said in an email.
Zulay is alsotemporarily raising the price of some of its milk frothers, smores roasting sticks and other products. The company’s popular kitchen strainer now costs $12.99, up from $9.99 before Trump announced his sweeping tariff proposal earlier this month.
Amazon merchants are hiking prices for everything from diaper bags and refrigerator magnets to charm necklaces and other top-selling items as they confront higher import costs. E-commerce software company SmartScout tracked 930 products on Amazon that have seen increased prices since April 9, with an average jump of 29%.
The price hikes affect a range of categories, including clothing, jewelry, household items, office supplies, electronics and toys.
The trade war with China has threatened to upend sellers on Amazon’s third-party marketplace, which accounts for about 60% of the company’s online sales. Many merchants are based in China or rely on the world’s second-largest economy to source and assemble their products.
Sellers are now faced with the conundrum of raising prices or eating the extra costs associated with Trump’s new tariffs. It’s an existential threat for many sellers, who subsist on razor-thin margins and have, for the last several years, dealt with rising costs on Amazon tied to storage, fulfillment, shipping and advertising fees along with pricing pressure from increased competition.
CEO Andy Jassy told CNBC earlier this month that the company was “going to try and do everything we can” to keep prices low for shoppers, including renegotiating terms with some of its suppliers. But he acknowledged some third-party sellers will “need to pass that cost” of tariffs on to consumers.
Amazon’s stock price is down 15% so far this year, sliding along with the broader market. The company reports first-quarter earnings next week.
Goods imported from China now face import duties of 145%, though Trump said Wednesday his administration is “actively” talking with China about a potential deal to lower tariffs. Chinese officials on Thursday denied that trade talks are taking place.
About 25% of the price increases observed by SmartScout were initiated by sellers based in China, said Scott Needham, the company’s CEO. Last week, stainless steel jewelry maker Ursteel hiked prices on four of its products by $6.50, while apparel brand Chouyatou raised the price of some of its dresses by $2. Both businesses are based in China’s Zhejiang province.
Anker, a Chinese electronics brand and one of Amazon’s largest sellers, has raised prices on one-fifth of its products sold in the U.S., including a portable power bank, which went up to $135 from $110, SmartScout data shows.
Representatives from Anker, Ursteel and Chouyatou didn’t respond to requests for comment.
Zulay, headquartered in Florida, is one of many U.S.-based sellers raising prices. The company is also cutting costs. Cordovez said he’s been forced to lay off 19% of his workforce and slash online ad spending by 85%.
Desert Cactus, based in Illinois, is also taking action. Joe Stefani, the company’s president, has been looking to move production of some of his brand’s college-themed merchandise out of China and into Mexico, India and Vietnam. About half of Desert Cactus’ goods come from China, while the rest are made in the U.S., Stefani said.
An Amazon worker moves a cart filled with packages at an Amazon delivery station in Alpharetta, Georgia, on Nov. 28, 2022.
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One of the company’s top products is a customizable license plate frame that’s manufactured in China. At the start of Trump’s first term in 2016, Stefani’s company paid import and shipping fees of 4% on the license plates. That rate has since skyrocketed to 170%, he said.
“The tariffs can’t stay this high,” Stefani said. “There’s so many people that just aren’t going to make it.”
Stefani said he expects Desert Cactus will end up raising prices on some products, though he’s worried shoppers might be put off by sticker shock.
“Will someone be willing to pay $50 for a hat on Amazon?” Stefani said. “You know it’s going to be expensive at the ballpark, but on Amazon we don’t know.”
Dave Dama, co-founder of health and beauty business Pure Daily Care, said the price to manufacture one of his skin-care products in China jumped to $25 from $10. Most Amazon sellers will have no choice but to raise prices, he said.
“If you were selling something for $40 and making a $7 or $8 profit at the end of the day, with these tariffs, those days are gone,” Dama said. “You can’t do that anymore. It’s unsustainable.”
Pure Daily Care plans to stagger price increases over several weeks, and only on products “we absolutely need to,” to keep Amazon’s algorithms from ranking it lower in search results or losing the valuable buy box, he said. The buy box determines which listing pops up first when a shopper clicks on a particular product, and the one that gets purchased when they tap “Add to Cart.”
An Amazon spokesperson said the company’s pricing policies continue to apply.
“As always, sellers set their own prices, and we regularly monitor how we highlight great prices as Featured Offers to provide customers with low prices across a wide selection,” the spokesperson said in a statement.
Dama said his company has enough inventory for some products to last up to six months, which it aims to “stretch as long as possible” in the hope that China and the U.S. can reach a trade deal. The company is also forgoing some sales promotions and discounts, while pausing spend on some display and video ads.
Regarding his inventory, Dama said, “We can try to stretch that seven, eight, nine months, which buys us a lot more time for this thing to work out, hopefully.”