In a move possibly aimed at optimizing resources and aligning with its core product priorities, Alphabet’s Google has announced a significant round of layoffs, impacting multiple teams within the tech giant.

The restructuring includes the departure of Fitbit co-founders James Park and Eric Friedman, signaling a broader effort to cut costs and streamline operations.

Google confirmed that the layoffs will span various teams, with significant cuts in its Voice Assistant unit, the hardware team responsible for Pixel, Nest, and Fitbit, as well as the augmented reality (AR) team. Additionally, the central engineering team, a vital part of Google’s innovation engine, will see the elimination of hundreds of roles.

The Fitbit acquisition in 2021 for $2.1 billion was initially seen as a strategic move to strengthen Google’s presence in the health and fitness tracking market. However, the departure of Fitbit co-founders and the simultaneous layoffs in the hardware division suggest a shift in focus or a consolidation of product lines.

“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. Some teams are continuing to make these kinds of organizational changes, which include some role eliminations globally,” a Google spokesperson who spoke to Reuters said.

Despite the acknowledgment of organizational changes, the spokesperson did not disclose the exact number of roles affected. The lack of transparency raises concerns among employees and industry observers about the scale of the restructuring and its potential impact on Google’s overall workforce.

The layoffs coincide with a broader industry trend where major tech companies, including Microsoft, are investing heavily in generative artificial intelligence (AI) technology. Google, too, had announced plans last year to integrate generative AI capabilities into its virtual assistant, aiming to enhance functionalities such as trip planning and email management.

The ongoing evolution of AI technology, exemplified by the success of OpenAI’s ChatGPT, has become a focal point for major tech players. However, it is essential to analyze whether the layoffs at Google are linked to a shift in priorities, technological advancements, or broader market dynamics.

This restructuring follows Alphabet’s announcement in January 2023, revealing plans to cut 12,000 jobs, constituting 6% of its global workforce. As of September 2023, Alphabet employed 182,381 people globally, and the recent layoffs raise questions about the company’s overall direction and its commitment to specific projects and divisions.

The departure of Fitbit co-founders adds another layer to the narrative, emphasizing the need for a closer examination of Google’s changing business strategy and its implications for both employees and the tech industry at large.

The job market is expected to react to these developments as the fate of the affected employees and the broader implications on Google’s competitiveness remain uncertain.

In a post on X (Twitter), the Alphabet Workers Union described the job cuts as “another round of needless layoffs.”

“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 union wrote. “We won’t stop fighting until our jobs are safe!”

Google lays off hundreds of workers – LinkedIn News

Google has joined Amazon and a slew of other U.S. businesses in announcing layoffs this week as it looks to cut costs and redirect resources towards artificial intelligence. The search giant said it cut hundreds of jobs on Wednesday across multiple divisions, including workers on Google’s digital assistant, hardware and engineering teams; the co-founders of Fitbit will also be leaving. It comes just as fellow tech giant Amazon said it would cut hundreds of jobsfrom its Twitch streaming service, Prime Video and MGM studios. Both companies are reversing some of their pandemic hiring sprees.

• Alphabet cut 12,000 jobs, or about 6% of staff, last January, and Amazon cut more than 25,000 jobs in 2023.
• Other recent layoffs include video game product maker Unity Software, which is letting go of some 1,800 people, per Reuters, and Duolingo, which is eliminating 10% of its contractor positions as artificial intelligence takes on some of their work, according to Bloomberg.
• A court adviser said Thursday that Google’s roughly $2.7 billion EU antitrust fine should be upheld.