Google is continuing its cost-cutting drive by laying off hundreds of employees working on its digital assistant, hardware, and engineering teams. The layoffs, which are part of a broader effort to realign resources with the company’s strategic priorities, come as Google faces increased competition from other tech giants and a challenging economic environment.
The affected workers include those working on Google Assistant, the company’s voice-based AI assistant, as well as employees in the augmented reality (AR) hardware team and the company’s central engineering organisation. A spokesperson for Google confirmed the layoffs, stating that the company is “making changes to become more efficient and work better, and [to] align our resources to our biggest product priorities.”
The layoffs are the latest in a series of cost-cutting measures taken by Google in recent months. In January 2023, parent company Alphabet announced that it would be reducing its workforce by 12,000 jobs or about 6% of its global workforce. The company has also made smaller cuts throughout 2023, including layoffs within teams focused on recruiting, news products, and the Waze mapping app.
The layoffs are not limited to Google. Amazon is also cutting hundreds of jobs across its content-creation units, including Prime Video and Twitch. Unity Software, which makes the tech that underpins popular mobile games like Pokémon Go, has announced plans to reduce its workforce by 25%, eliminating about 1,800 jobs. And Rent the Runway has also announced layoffs, although its Irish operation has been largely spared.
The tech industry is still grappling with the effects of the COVID-19 pandemic and the war in Ukraine. Higher interest rates and a potential recession have also put pressure on tech companies, which are often seen as being more sensitive to economic downturns. With these challenges in mind, many tech companies are now focusing on profitability rather than revenue growth.
The layoffs at Google and other tech companies are likely to have a ripple effect through the economy, as affected employees seek new jobs. This could lead to a decrease in consumer spending and further economic uncertainty.
Source: Bloomberg
