Alphabet Inc.’s Google is laying off hundreds of people working on its digital assistant, hardware and engineering teams as part of a continued effort to lower costs and prioritize efforts around artificial intelligence.
The affected employees included those working on the voice-based Google Assistant and at the augmented reality hardware team.
The company’s central engineering organization was also hit by cuts, the company said.
The reductions come as Google’s core search business feels the heat from the AI offerings of rivals Microsoft Corp. and ChatGPT-creator OpenAI. On calls with investors, Google executives pledged to scrutinize their operations to identify places where they can make cuts, and free up resources to invest in their biggest priorities.
"Throughout the second half of 2023, a number of our teams made changes to become more efficient and work better, and to align their resources to their biggest product priorities,” a Google spokesperson said in a statement.
"Some teams are continuing to make these kinds of organizational changes, which include some role eliminations globally.”
Alphabet’s shares rose as much as 2.1% to $145.22 in New York, the highest level in almost two years.
Workers at the search giant have been on edge since January of last year, when parent Alphabet said it would cut about 12,000 jobs, more than 6% of its global workforce.
That sent shock waves through Silicon Valley. But the company continued to make smaller trims over the course of 2023, including layoffs within teams focused on recruiting, news products and the Waze mapping app.
While the large round of cuts in January 2023 was telegraphed by Alphabet CEO Sundar Pichai, this year’s reductions have been communicated by lower-level leaders, such as vice presidents and human resources, according to a current employee and a former worker.
Amazon.com Inc. also laid off hundreds of staff in its Prime Video and studios business this week, raising questions about whether another major round of job cuts was underway in Silicon Valley.
Semafor first reported the layoffs to the Google Assistant team, while 9to5Google first reported the reorganization for hardware. Affected staff have begun receiving the news and will have the opportunity to apply for open positions elsewhere within Google, the company said.
The Alphabet Workers Union, which represents some of its employees, criticized the job cuts in a statement posted to the social network X, formerly known as Twitter.
"Our members and teammates work hard every day to build great products for our users, and the company cannot continue to fire our coworkers while making billions every quarter,” the group said. "We won’t stop fighting until our jobs are safe!”
