Google, the tech giant owned by Alphabet, is making strategic layoffs in an effort to prioritize artificial intelligence (AI) innovation and cut costs. The company is letting go of employees working on its digital assistant, hardware, and engineering teams. This includes those involved in developing the voice-based Google Assistant and the augmented reality hardware team. The central engineering organization is also experiencing cuts. The move comes as Google faces competition from rivals Microsoft and OpenAI in the AI space.
Throughout the second half of 2023, Google teams have been working to become more efficient and align their resources with their biggest product priorities. These organizational changes have included some role eliminations globally. A spokesperson for Google stated, “Some teams are continuing to make these kinds of organizational changes, which include some role eliminations globally.” This reflects Google’s commitment to scrutinizing their operations and freeing up resources to invest in their most important areas of focus.
The layoffs have affected both rank-and-file employees and executives. In California alone, 630 workers have been let go, including four vice-presidents and 25 directors. According to the Alphabet Workers Union, which represents some Google employees, over 1,000 workers have been laid off in total. Even the co-founders of Fitbit, James Park and Eric Friedman, who were part of the Google reorganization after the company’s acquisition of Fitbit in 2019, are leaving.
These layoffs follow a series of job cuts by Alphabet, which announced in January of last year its plans to cut around 12,000 jobs, representing over 6% of its global workforce. The company has since made smaller cuts within various teams throughout 2023, including recruiting, news products, and the Waze mapping app.
Communication about the layoffs has been handled by lower-level leaders, such as vice-presidents and human resources, rather than by Alphabet CEO Sundar Pichai. Employees have shared information about the cuts through platforms like Discord and hallway conversations. Internal documents detailing the affected roles and providing resources for laid-off coworkers have been circulated among workers, reflecting a lack of trust and low morale among employees.
It is difficult to determine the exact number of jobs affected by the layoffs, but Google has stated that more cuts can be expected throughout January as decisions are made at the department level. The company employed around 182,000 people as of September 2023, and had 190,700 workers before the previous round of layoffs.
Despite the company’s framing of the cuts as a way to refocus resources on their biggest priorities, some employees who were let go express disappointment as they were working on AI, a key focus area for Google. The layoffs have also raised questions about potential job cuts in other tech companies, such as Amazon.
Affected employees will have the opportunity to apply for open positions within Google. This strategic restructuring reflects Google’s commitment to staying competitive in the AI market and making efficient use of its resources.
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