Google confirms fresh round of layoffs; 1,000 employees receive pink slips

Google announced a strategic move to optimise its global ad team by eliminating “a few hundred” positions, primarily from its “large customer” sales team, according to media reports. The layoffs signify the company’s move towards leveraging artificial intelligence to enhance efficiency and creativity while providing better support for small and medium-sized businesses advertising on Google’s platform.

According to one report by India Today, around 1,000 employees have reportedly received pink slips in this fresh round of layoffs. In the reported mail received by employees, Google stated that eligible employees would receive severance pay, and may reapply for select positions in other departments that are available. Those unable to secure a position within the company will be required to exit in April 2024. In the mail, Google also offered outplacement services to support the affected employees, along with providing information on state unemployment benefits.

Last week, Google’s cloud computing unit announced layoffs affecting employees, specifically in the digital assistant, hardware, and engineering teams, as part of cost-cutting measures. This move aligns with Google’s plan to expand its small business ad teams, anticipating increased hiring throughout the year.
Google parent Alphabet had announced job cuts affecting 12,000 employees, which made up over six per cent of its global workforce, during this same period last year. While CEO Sundar Pichai announced the shocking cuts in January 2023, this year’s reductions have been communicated by lower-level leaders, including vice presidents and human resources.

Since last year, Google has also continued making substantial investments in generative AI, marking it as a key focus for the tech giant. On January 11, 2024, the company further emphasised its commitment to developing new AI tools for retailers, aiming to personalise online shopping, modernise operations, and enhance in-store technology.