Second wave of layoffs at Google as AI reshapes tech landscape

In 2024, Google has announced a significant restructuring initiative, which includes a second major round of layoffs within the year, as communicated by Ruth Porat, the company’s Chief Financial Officer. This announcement was foreshadowed by warnings from CEO Sundar Pichai earlier in the year about the potential for additional job cuts.

The layoffs are a direct consequence of what Porat describes as a “tremendous platform shift within AI technology”, CNBC reported. This shift presents Google with new opportunities to develop more effective products for its vast user base and to deliver quicker solutions to customers. However, it also necessitates some hard choices concerning operational adjustments to prioritize the company’s most crucial projects.

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Porat’s memo to employees, reported by CNBC, expressed regret over the departure of talented colleagues, acknowledging the difficulty of such changes. While the exact number of affected employees has not been disclosed, it is reported that the layoffs will predominantly impact Google’s finance division.

The restructuring extends beyond the United States, affecting several international teams across the Asia-Pacific region, Europe, and the Middle East. Additionally, Google plans to consolidate operations by establishing more centralised hubs in Bangalore, Dublin, Mexico City, Atlanta, and Chicago. This move is part of a broader trend of workforce adjustments within the tech industry.

The phenomenon of job cuts in the tech sector is not unique to Google. Throughout 2023 and 2024, other tech behemoths like Tesla, Apple, and Amazon have also executed similar restructuring plans. These changes have led to the termination of employment for tens of thousands of tech workers globally. In 2024 alone, it is estimated that over 58,000 tech employees have been laid off across the industry.

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These layoffs reflect the industry’s ongoing challenges and transformations, particularly in adapting to the rapid advancements and integration of artificial intelligence technologies. Companies are forced to reconsider their workforce needs and operational strategies to stay competitive and responsive to technological and market demands. This trend highlights the volatile nature of the tech industry and the continual need for companies to adapt to fast-evolving technological landscapes.

NOT JUST AI

Another round of layoffs recently reported at Google came from the protests against Project Nimbus, which is a $1.2 billion joint contract with Amazon.com Inc. to provide the Israeli government with AI and cloud services.