Google has again announced layoffs — another attempt by the tech giant to reduce its high costs. The company is expected to direct its resources to investments in artificial intelligence.
KEY FACTS
It is not yet clear what the number of redundant employees will be. Those affected will be able to apply for internal positions, the company announced. A small percentage of the affected positions will be transferred to centers in which the company invests. Google’s chief financial officer, Ruth Porath, sent an email to employees saying the restructuring includes expanding operations in Bangalore, Mexico City and Dublin, Business Insider said. The publication’s sources indicate that employees in the real estate and finance departments are affected. The teams include Google Finance, Business Services and Cash Operations. The latest cuts follow a broader effort by Google to realign its workforce and resources and redirect investment into new technologies after the tech giant reported a decline in advertising revenue.
IMPORTANT QUOTE
«The technology sector is in the midst of a huge shift when it comes to artificial intelligence. As a company, this means we have the opportunity to create more useful products for billions of users and deliver faster solutions to our customers, but it also means we collectively have to make tough decisions, including how and where to work to align with our highest priority areas,» Porat wrote in the message sent to employees.
KEY STORY
It’s another wave of layoffs in the tech industry this year, including for Google. Concerns are mounting that this trend could continue as the tech giant grapples with economic uncertainty.In January, Google laid off hundreds of employees from various teams, including the company’s engineering and hardware departments. At the time, the company’s CEO, Sundar Pichai, told employees to expect more layoffs.In January 2023, Alphabet announced plans to cut 12,000 jobs, equivalent to 6% of its global workforce.Alphabet reported better-than-expected revenue and profit for the fourth quarter of 2023. Operating income in the fourth quarter was $864 million, following a loss of $186 million a year earlier. Advertising revenue of $65.52 billion missed analysts’ estimates of $65.94 billion,Due to last year’s workforce cuts, the company has reported $2.1 billion in benefits and related costs for 2023.
Alphabet’s shares hit a record high, and the tech giant is on track for a $2 trillion valuation. dollar. Alphabet shares hit an all-time high of $159.89 per share and are currently trading at $156.88.
