Google recently laid off at least 200 employees from its “Core” teams, just before announcing a blowout first-quarter earnings report. These teams are responsible for building the technical foundation behind the company’s flagship products and ensuring user online safety. The layoffs included engineering positions in Sunnyvale, California, with many roles being moved to Mexico and India. This reorganization is part of a larger effort by Alphabet, Google’s parent company, to shift positions to high-growth global workforce locations while maintaining a global footprint.
The layoffs were announced by Asim Husain, vice president of Google Developer Ecosystem, in an email to his team. This move is part of the biggest planned reduction for his team this year, according to internal documents. In addition to the Core teams, Alphabet has been downsizing across multiple organizations since early last year, even as digital advertising revenues have rebounded. The company is restructuring its finance department, with layoffs and position moves to Bangalore and Mexico City also in the works. Google is planning to build teams closer to users in key markets like India and Brazil where labor costs are lower.
Despite the layoffs, Google is experiencing its fastest growth rate since early 2022 and improving profit margins. The company recently reported a 15% jump in first-quarter revenue and announced its first-ever dividend and a $70 billion buyback. This growth comes as the company prepares for its annual developer conference, Google I/O, where new products and tools are typically revealed. Alphabet is increasingly incorporating artificial intelligence into its products, with Google rebranding its chatbot to Gemini, aligning it with AI models powering the product.
The layoffs are also affecting the governance and protected data group within the Core teams, with these roles being central to regulatory challenges facing the company. This includes compliance with regulations like the European Union’s Digital Markets Act, which aims to address anti-competitive practices in the tech industry. Google’s senior vice president overseeing search, Prabhakar Raghavan, referenced heightened competition, a more challenging regulatory environment, and slower organic growth as the company’s “new operating reality.”The company has confirmed the Core reorganization and layoffs and is offering affected employees the opportunity to apply for open roles within Google and access outplacement services.
Overall, the layoffs and reorganization at Google are part of a larger strategy by Alphabet to streamline operations and align resources with the company’s biggest product priorities. The focus on moving roles to high-growth global locations and incorporating artificial intelligence into products reflects the company’s efforts to adapt to changing market conditions and regulatory challenges. Despite these changes, Google continues to experience growth and profitability, as evidenced by its recent earnings report and ongoing innovations in AI technology.
