Sunnyvale, CA – In a major reorganization move, Google has confirmed the layoff of at least 200 employees from its “Core” units, as part of a strategic shift that includes relocating some positions to India and Mexico. This announcement came shortly before the tech giant reported a significant increase in its first-quarter earnings on April 25.
The Core teams at Google are crucial, tasked with developing the technical backbone of the company’s primary products and ensuring online safety for users. These teams encompass various technical roles across IT, Python development, technical infrastructure, security, application platforms, and engineering.
This restructuring impacts at least 50 engineering roles at Google’s Sunnyvale offices, according to recent filings. Internal documents reveal plans to replicate these positions in Mexico and India, aligning with the company’s goal to operate closer to its partners and developer communities globally.
Asim Husain, Vice President of Google Developer Ecosystem, communicated the layoffs through an email and discussed them further during a town hall meeting. He highlighted this move as the most substantial reduction planned for his team in 2023, emphasizing the company’s intention to maintain its global presence while expanding in key high-growth markets.
Alphabet’s Continued Downsizing Amid Growth
These layoffs are part of a broader trend of workforce reductions at Alphabet, Google’s parent company, which began in early 2022. Initially triggered by a downturn in the digital advertising market, these cuts have continued despite a recent rebound in this sector. Alphabet has reduced approximately 12,000 jobs, about 6% of its workforce, over the past year.
Alphabet’s Chief Financial Officer, Ruth Porat, and other executives have pointed to ongoing restructuring across various departments, with significant shifts focusing on Bangalore and Mexico City. This strategy aims to build teams in markets like India and Brazil, where labor costs are lower compared to the U.S.
Financial Uptick and Strategic Rebranding
Despite the layoffs, Alphabet has experienced robust growth, reporting a 15% increase in first-quarter revenue from the previous year. This growth has prompted the company to announce its first-ever dividend and a substantial $70 billion stock buyback.
The Core teams’ reorganization coincides with Google’s push towards integrating more artificial intelligence into its offerings. In February, Google announced the rebranding of its chatbot “Bard” to “Gemini,” indicating a deeper commitment to AI technologies.
Upcoming Changes and Regulatory Challenges
The upcoming Google I/O developer conference on May 14 is expected to unveil new developer tools and products developed over the past year. This event will likely spotlight the shift towards generative AI, described by Husain as a significant turning point for software development.
Furthermore, the layoffs also affect the governance and protected data group, which is increasingly relevant as Google navigates a complex global regulatory environment. This includes recent developments like the European Union’s Digital Markets Act, which targets anti-competitive practices in tech.
Google’s Response
When asked for comments, a Google spokesperson confirmed the reorganization and layoffs, highlighting that affected employees could apply for other positions within the company and would have access to outplacement services.
The spokesperson emphasized, “As we’ve said, we’re responsibly investing in our company’s biggest priorities and the significant opportunities ahead. A number of our teams made changes to become more efficient and work better, remove layers, and align their resources to their biggest product priorities.”
As Google adapts to its “new operating reality” with these strategic adjustments, the impact on its workforce and future innovations remains a critical focus for the industry and its observers.
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