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Google announces hundreds of layoffs as it focuses on AI

By Nithya Bose in Business News, posted January 11, 2024

Google has laid off hundreds of employees across various divisions to save costs as it prioritizes artificial intelligence initiatives.

The downsizing affects the core engineering division, Google Assistant, and the hardware division responsible for Pixel phones, Fitbit watches, and Nest thermostats.

Several hundred staffers from its engineering unit lost corporate access and received notifications of role eliminations.

The company told some staff from the division: “We’ve had to make some difficult decisions about ongoing employment of some Google employees and we regret to inform you that your position is being eliminated.”

The cuts align with Google's strategic shift under CEO Sundar Pichai.

Mr Pichai has been driving efforts since July 2022 to streamline operations and reduce expenses amid challenging global economic conditions.

In January 2023, Google launched a massive cut, letting go of 6 percent of its workforce, or 12,000 employees, in its largest layoff.

Since then, executives at Google have said their strategy is to cut costs to focus on the burgeoning generative AI.

A Google spokesman said: “We’re responsibly investing in our company’s biggest priorities and the significant opportunities ahead.”

"After cuts throughout the second half 2023, some teams are continuing to make these kinds of organizational changes, which include some role eliminations globally.”

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Layoffs are a broader trend in the tech industry, with notable job losses announced by major players such as Meta, Amazon, and Xerox.

Amazon recently shed hundreds of workers from its Twitch streaming service, Prime Video, and MGM studios.

Xerox announced plans to cut 15 percent of its 23,000-person staff.

Despite the ongoing challenges, Google maintains the layoffs are part of regular reorganizations in the normal business course.

However, the Alphabet Workers Union, representing over 1,400 workers at Alphabet, Google's parent company, criticized the layoffs as "needless."

They raised concerns about the company's continued workforce reductions while reporting substantial quarterly profits.

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