In response to the ongoing economic slowdown and increasing competition in the tech industry, Google has announced plans for workforce reductions within its AI division. The move comes as the company seeks to streamline its operations and allocate resources more efficiently to meet its most pressing objectives.
Google confirmed that the job cuts will primarily affect employees working in the hardware division, digital assistant, and engineering teams. The reductions will impact several areas, including the voice-based Google Assistant and the augmented reality (AR) hardware team. While a small number of roles in the AR hardware team will be eliminated, Google remains committed to other AR initiatives and product partnerships.
The decision to implement workforce reductions is reportedly driven by the stiff competition Google faces from Microsoft and OpenAI in the field of artificial intelligence. The aggressive push by both companies in the AI services market, particularly offerings such as ChatGPT and Co-Pilot, has affected Google’s dominant position in the search business. Consequently, senior executives at Google are reviewing the business and identifying areas where costs can be reduced to allocate more resources to critical objectives.
Furthermore, this move follows the recent departure of Fitbit co-founders James Park and Eric Friedman, along with other Fitbit executives. Their resignations occurred as part of Google’s ongoing efforts to reorganize its Devices & Services teams responsible for Pixel, Nest, and Fitbit hardware. Google is introducing a functional organizational model that centralizes hardware engineering for its various products under one team and leader, mirroring the organizational structure adopted by Apple.
It is worth noting that Google has been experiencing workforce uncertainty since January 2023 when it announced a mass layoff affecting 6% of its global workforce. Throughout the year, the company continued smaller-scale job cuts as part of its broader restructuring plan. This year, the communication of layoffs has transitioned from being announced by Alphabet CEO Sundar Pichai to lower-level executives directly addressing affected teams.
Google’s strategic workforce reductions reflect its commitment to adapt to the competitive landscape and optimize resources to achieve its core objectives. As the tech industry continues to evolve, companies must make tough decisions to stay ahead of the curve and remain competitive in the market.
The source of the article is from the blog procarsrl.com.ar