Google and Amazon have recently made substantial cutbacks to their workforce, signaling a shift in focus towards investments in artificial intelligence (AI). Google recently laid off hundreds of employees in its hardware, voice assistance, and engineering teams as part of cost-cutting measures. The company stated that these actions would allow them to invest responsibly in their biggest priorities and the significant opportunities in the future. Similarly, Amazon announced that it would be cutting several hundred positions across its Prime Video and MGM Studios unit.
The move towards AI investments aligns with the broader trend in the technology industry. Rival company Microsoft has also placed a strong emphasis on AI, with recent introductions of AI features in products like Bing, Edge, and Windows for corporate customers. According to industry analyst Dan Ives, Microsoft is taking the lead in the AI arms race. This shift highlights the growing importance of AI technologies in various sectors.
These cuts come after statements from Google and its parent company Alphabet, indicating a commitment to reducing costs. About a year ago, Google had already planned to lay off 6% of its workforce, amounting to around 12,000 employees. The recent layoffs are just the latest in a series of organizational changes by the company.
The Alphabet Workers Union criticized the job cuts, referring to them as “needless layoffs” in a post on Twitter. They argued that the company should not continue firing employees while reporting significant profits. Similar to Google, other technology companies have also resorted to workforce reductions. Meta, the parent company of Facebook, has slashed over 20,000 jobs to reassure investors, and Spotify recently announced its third round of layoffs as it seeks to cut costs and improve profitability.
Amazon has been no exception to this trend. The company has laid off hundreds of employees in its Prime Video and studios units, as well as around 500 employees from its livestreaming platform Twitch. The e-commerce giant has experienced significant growth throughout the pandemic and has now entered a phase of reevaluation and streamlining of its workforce.
As technology companies adapt to the changing industry landscape, it is evident that investments in AI are becoming a top priority. These strategic shifts will shape the future of these companies and their offerings, ultimately driving innovation and advancements in the field of artificial intelligence.