Alphabet Inc is eliminating 12,000 jobs, its chief executive said in a staff memo shared with Reuters.

The cuts mark the latest to shake the technology sector and come days after rival Microsoft Corp said it would lay off 10,000 workers.

The job losses affect teams across the company including recruiting and some corporate functions, as well as some engineering and products teams.

The layoffs are global and impact U.S. staff immediately, Google said.

The news comes during a period of economic uncertainty as well as technological promise, in which Google and Microsoft have been investing in a fledgling area of software known as generative artificial intelligence.

Sundar Pichai, Alphabet’s CEO, said in the note, “I am confident about the huge opportunity in front of us thanks to the strength of our mission, the value of our products and services, and our early investments in AI.”

Reuters was first to report the news.