The new year has not started on a good foot at Google, which, as happened at the beginning of 2023, has started this year with the dismissal of hundreds of workers. The technology giant seeks to increase its efficiency and reunify teams.
The creators of the search engine are noticing how AI affects searches and intend to become more competitive again with these measures.
2024 begins with layoffs
It seems that at Google they start every year with layoffs. If last year we saw the reduction of around 12,000 employees, this year also begins with layoffs, although fortunately the figure is not so high.
The technology giant is carrying out the necessary reorganizations and a common strategy as part of the company’s reorganization. One of the main consequences is cost reduction through labor reductions. Specifically, Google is planning similar measures within its AI division as part of a planned reorganization.
In a statement to 9to5Google, Google confirmed that it is reducing the number of employees in the hardware division, digital assistant and engineering teams. According to Google, the job cuts will affect staff, including those working on the voice-based Google Assistant and augmented reality hardware team. Additionally, employees working for the company’s central engineering organization responsible for products will also be affected.
“A few hundred roles are being eliminated in DSPA, with most of the impacts on the 1P AR hardware team. “While we make changes to our 1P AR hardware team, Google remains deeply committed to other AR initiatives, such as AR experiences in our products and product partnerships,” the company’s statement reads.
AI competes with Google
Google is also reportedly facing stiff competition from AI offerings from Microsoft and OpenAI. Both companies are boosting their AI services, such as ChatGPT and Co-Pilot, which is impacting Google’s core search business. As a result, Google’s top executives are reviewing the business and finding areas where they can reduce costs and allocate more funds to more important strategic goals.
“Throughout the second half of 2023, several of our teams made changes to be more efficient and work better, and to align their resources with their highest product priorities,” a Google spokesperson said in a statement to Bloomberg. “Some teams continue to make these types of organizational changes, including some global role eliminations.”
Domino effect with Fitbit
Notably, the layoffs come after the departure of Fitbit co-founders James Park, Eric Friedman and other Fitbit executives who resigned from their positions. His resignation follows Google’s plans to reorganize the Devices and Services teams responsible for Pixel, Nest and Fitbit hardware.
As part of the reorganization, Google is adopting a functional organization model, meaning that hardware engineering for Pixel, Nest and Fitbit will be handled by one team with one leader for all Google hardware products. Apple also follows a similar organizational model where it has centralized software engineering, services, hardware technologies, and hardware engineering organizations.
