Google announces massive job cuts

Is Google’s recent job cut decision a sign of distress or just strategic repositioning?

In a significant development, Google has declared the redundancy of numerous staff across various departments, marking a continuation of its recent cost-cutting measures.

This announcement was made on Thursday, January 11, following the 12,000 job cuts the tech giant carried out in January 2023, which impacted a substantial portion of its full-time workforce.

The affected areas include central engineering, Google Assistant, and the teams responsible for Pixel, Nest, and Fitbit hardware.

Date and details of the layoffs

The Alphabet subsidiary outlined this decision as part of its broader strategy to manage expenses more effectively. The layoffs come as the latest in a series of reductions that have also impacted the company’s news and recruitment divisions.

Focusing on future technologies

Google is evidently shifting its focus towards artificial intelligence (AI). In this pursuit, it has introduced initiatives like the Bard chatbot and the Gemini AI model, aiming to compete with industry counterparts at Microsoft and Amazon.

A spokesperson from US media disclosed, ‘To better position ourselves for these opportunities, throughout the second half of 2023, several of our teams made changes to be more efficient and work better, as well as to align their resources with their highest product priorities.’

Union response and stock market impact

However, the Alphabet Workers Union (AWU-CWA) has labelled the layoffs as ‘unnecessary.’ On the social network Twitter/X, they affirmed, ‘they will not stop fighting until their jobs are secured.’

Following these developments, Alphabet’s shares experienced a downturn, falling by 0.78 per cent. By midday, they were trading at approximately $141.17 (€128.90) each on the New York Nasdaq.

The series of layoffs and strategic shifts highlight a significant transformation within Google, as it navigates the competitive and ever-evolving landscape of the tech industry.