Google plans on unleashing more layoffs in the coming year.
In an internal memo sent to employees this week and viewed by The Verge, Google CEO Sundar Pichai suggested the company has “ambitious goals” and “big priorities” that will require a massive investment, leading to cost-cutting and layoffs in certain areas. A portion of the job cuts are designed to “simplify execution and drive velocity in some areas” (and if that sounds vaguely familiar, Meta unleashed similar “flatten the org” layoffs in March 2023).
“These role eliminations are not at the scale of last year’s reductions, and will not touch every team,” Pichai’s memo added. However, Google declined to offer specific numbers.
Earlier this month, Google laid off “several hundred” employees across multiple divisions, including its core engineering group, according to a new report in The New York Times. Those cutbacks were also attributed to the need to invest in expensive priorities such as artificial intelligence (A.I.) development.
Google and other tech giants (including Amazon, Microsoft, Salesforce and more) kicked off 2023 by laying off tens of thousands of tech professionals. However, those cutbacks were largely driven by dipping profits and fears of a potential recession, and layoffs across the tech industry tapered off throughout the rest of the year. In the first few weeks of 2024, some tech companies have laid off workers, but many of those actions seem driven by executives’ need to reorganize teams and shift resources, as opposed to broader economic concerns.
The tech unemployment rate hit 2.3 percent in December, lower than the national unemployment rate of 3.7 percent. The tech industry also enjoyed a net increase of 12,922 jobs, the biggest such gain since April. Google might be cutting employees, but other tech companies seem to be in growth mode, and they’re particularly interested in specialists in key areas such as artificial intelligence (A.I.) and data science.