Google has reportedly laid off hundreds of employees from its “Core” organization while relocating positions to India and Mexico.
CNBC reports that tech giant Google has taken a significant step in restructuring its workforce, impacting its “Core” teams responsible for building the technical foundation behind the company’s flagship products and ensuring online safety. The reorganization, announced through internal communications, has resulted in the layoff of at least 200 employees, with a substantial portion coming from engineering roles at the company’s Sunnyvale, California offices.
Sundar Pichai, chief executive officer of Alphabet Inc., during the Google I/O Developers Conference in Mountain View, California, US, on Wednesday, May 10, 2023. Photographer: David Paul Morris/Bloomberg
The reorganization is part of Google’s broader strategy to expand its global footprint and operate closer to key partners and developer communities in high-growth regions. As a result, many of the eliminated positions from the Core teams will be replaced by corresponding roles in India and Mexico, where labor costs are lower than in the United States.
Asim Husain, Vice President of Google Developer Ecosystem, addressed the changes in an email to his team, acknowledging the uncertainty and frustration that such announcements may cause. He emphasized that the restructuring aligns with the company’s broader goals and aims to maintain its global presence while expanding in strategic locations.
The Core unit plays a vital role in Google’s operations, encompassing key technical units such as information technology, Python developer teams, technical infrastructure, security foundations, app platforms, core developers, and various engineering roles. The layoffs and subsequent relocation of roles reflect Google’s efforts to streamline its developer tools and incorporate more AI into its products.
The restructuring comes as Google gears up for its annual developer conference, Google I/O, scheduled for May 14. The event traditionally serves as a platform for the company to unveil new developer products and tools developed over the previous year. Husain highlighted that recent advances in generative AI, including Google’s Gemini model, are changing the nature of software development, underscoring the significance of the Core teams in navigating this pivotal shift.
Google’s decision to expand its workforce in India and Mexico aligns with the company’s broader strategy of building teams closer to users in key markets, as outlined by management, during an all-hands meeting in March. The move follows a series of cost-cutting measures implemented by the tech giant, including the layoff of approximately 12,000 employees, or six percent of its workforce, announced early last year in response to a downturn in the online advertising market.
Despite the ongoing restructuring efforts, Google reported solid financial results for the first quarter of 2024, with a 15 percent jump in revenue compared to the previous year. The company also announced its first-ever dividend and a $70 billion share buyback program, signaling confidence in its future growth prospects.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
