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Google announces major layoffs across key teams

Faith Chandianya by Faith Chandianya
January 11, 2024
in News
Reading Time: 2 mins read
Google

[Photo/ Courtesy]

Google has announced significant workforce reductions spanning multiple teams, marking a continued effort by the tech giant to reduce operational costs.

The layoffs include the departure of Fitbit co-founders James Park and Eric Friedman. The company disclosed that it will be cutting positions in various units, including the Voice Assistant unit, the hardware team overseeing Pixel, Nest, and Fitbit, and the augmented reality (AR) team.

Additionally, a substantial number of roles within Google’s central engineering team will be affected. The decision to streamline its workforce comes as Google seeks to optimize its operations despite recent acquisitions, such as the $2.1 billion purchase of health and fitness tracking company Fitbit in 2021.

Despite this acquisition, Google has continued to introduce new iterations of its Pixel Watch, a product that competes with both Fitbit’s devices and the Apple Watch.

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Google’s spokesperson refrained from specifying the exact number of roles affected, leaving uncertainties regarding the extent of the impact on the Google Assistant software and other associated teams.

The reorganization of specific teams aligns with the broader industry trend, where companies such as Microsoft (MSFT.O) and Google are increasingly investing in generative artificial intelligence (AI) technology. This trend follows the success of OpenAI’s ChatGPT.

In the previous year, Google unveiled its intentions to incorporate generative AI capabilities into its virtual assistant. This technology aims to enhance the assistant’s capabilities, enabling it to assist users in activities like trip planning, email management, and engaging in follow-up inquiries.

By January 2023, Alphabet had declared its plans to reduce its workforce by 12,000 jobs, representing 6% of its global employee base. At that time, the company had a total of 182,381 employees worldwide as of September 2023.

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