In a significant move, tech giant Google has declared plans for major restructuring, potentially leading to employee layoffs. The company’s chief financial officer, Ruth Porat, conveyed this message to employees via a memo, CNBC reported. According to the memo, Ruth Porat addressed the ongoing platform shift in the tech sector, particularly with the emergence of Artificial Intelligence (AI). She emphasised the opportunity to develop more helpful products for users and faster solutions for customers. However, Porat acknowledged the necessity for tough decisions, including adjustments in work locations to align with priority areas.
“We are sad to say goodbye to some talented teammates and friends we care about, and we know this change is difficult,” the memo stated. This announcement follows Google CEO Sundar Pichai’s earlier warning about the potential for more layoffs in 2024.
Impact on Google employees
While Google did not specify the exact number of employees affected by the latest round of layoffs, reports suggest that it could primarily impact the finance division.
Global impact of layoffs
The restructuring is expected to affect teams across Asia-Pacific, Europe, and the Middle East. Google intends to establish more centralized hubs in cities such as Bangalore, Dublin, Mexico City, Atlanta, and Chicago.
Tech layoffs trend in 2024
Google’s move adds to the trend of tech companies implementing restructuring plans in 2023 and 2024, leading to tens of thousands of job cuts worldwide. Reports indicate that over 58,000 tech employees have been laid off thus far in 2024.
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