Google LLC’s parent company Alphabet Inc. is planning to cut back on new hires this year in a stark reminder that very few companies will be left unscathed by the economic impact of the coronavirus pandemic.

The plans were revealed in an email from Alphabet Chief Executive Officer Sundar Pichai to employees this week.

“We believe now is the time to significantly slow down the pace of hiring, while maintaining momentum in a small number of strategic areas where users and businesses rely on Google for ongoing support, and where our growth is critical to their success,” Pichai wrote in the memo, which was first reported by Bloomberg.

“Beyond hiring, we continue to invest, but will be recalibrating the focus and pace of our investments in areas like data centers and machines, and non business essential marketing and travel,” the CEO added.

A spokesperson for Google later confirmed the story, telling media that the company does plan to slow its pace of hiring this year, though it will still onboard those who have already been hired but have yet to start.

In his email, Pichai explained that Google hired 20,000 new employees last year and was planning to hire a similar number this year. To date, 4,000 new employees have already been onboarded this year, and about 1,000 more are set to start working for the company soon.

The vast majority of Google’s revenue is driven by advertising, which is an industry that’s directly related to consumer spending, said Moor Insights & Strategy analyst Patrick Moorhead.

“Advertisers are pulling back as discretionary consumer spend declines and this will impact Google,” Moorhead said. “I don’t think this is a blanket statement about tech. I believe tech companies linked to consumer discretionary spend, such as Google and Apple, will be impacted most.”

Charles King, an analyst with Pund-IT Inc., told SiliconANGLE the cutbacks are a reminder that virtually every organization on the planet is likely to be affected by the coronavirus pandemic.

“The effects are seldom even, and in many cases result in changes that are permanent or even terminal,” King said. “Like many families and individuals, the pandemic is forcing businesses to reconsider what they consider critical necessities.”

For his part, Pichai was keen to stress that the steps being taken today were part of his plans to ensure Google emerges from the crisis in a position to “continue long-term growth.”

“Just like the 2008 financial crisis, the entire global economy is hurting, and Google and Alphabet are not immune to the effects of this global pandemic,” Pichai reportedly said. “We exist in an ecosystem of partnerships and interconnected businesses, many of whom are feeling significant pain.”

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