Google CEO Cautions of Further Workforce Reductions
Sundar Pichai, the CEO of Google and Alphabet, has alerted employees about additional layoffs anticipated at the prominent search engine company as it shifts its focus towards new priorities, particularly in the realm of artificial intelligence.
"These role eliminations are not on the scale of last year's reductions and will not impact every team. However, I understand it's challenging to witness colleagues and teams being affected," conveyed Pichai in an email to the staff, as observed by AFP on Thursday.
Pichai acknowledged that several of these changes have already been announced. Nevertheless, he candidly stated that certain teams would continue to make specific resource allocation decisions throughout the year, potentially affecting some roles.
Approximately a year ago, Google underwent a significant downsizing, letting go of around 12,000 employees, constituting approximately six percent of its workforce, amidst concerns related to inflation and escalating interest rates.
The company has recently confirmed its decision to eliminate "a few hundred" positions from its global advertising team, aligning with its strategy to leverage artificial intelligence for enhanced efficiency and creativity.
The layoffs within the "large customer" sales team are envisioned to lead to better support for small and medium-sized businesses advertising on Google's platform, according to the tech giant.
Additionally, Google has implemented staff reductions, affecting about 100 employees within its YouTube division, as confirmed by the company to TechCrunch. Reportedly, these YouTube workers have a two-month window to secure new roles within the company before their dismissals take effect.
In a broader industry trend, other major tech companies, including Amazon, have also initiated staff cuts since the beginning of 2024. Amazon's workforce reductions have been targeted at its entertainment units, namely Twitch, Prime Video, and Amazon MGM Studios.
This follows a broader trend within US tech giants, which have laid off tens of thousands of employees in an unprecedented spree of layoffs since late 2022. This was a consequence of over-hiring during the Covid-19 pandemic.
Meta, the parent company of Facebook, for instance, underwent layoffs of more than 20,000 workers during this period, designating it as the "Year of Efficiency." Amazon, during the same timeframe, saw a reduction of 27,000 workers.