California, 20 DEC

Google has laid off 10 per cent of its managerial staff as part of an ongoing efficiency initiative, targeting roles at the manager, director, and vice president levels. This move follows a competitive push in the AI sector, with rivals like OpenAI posing a threat to Google’s search business.

CEO Sundar Pichai emphasised a shift towards generative AI, with the launch of Gemini 2.0. These layoffs mark the fourth round this year, following job cuts in January and June. The company’s ongoing efficiency drive, which began in 2022, has already resulted in significant role eliminations. Pichai acknowledged the challenges of these decisions, stressing the need for adaptation in a rapidly changing market.

The layoffs in 2024 mark the fourth round, including cuts to Google’s global advertisements team and cloud unit. By January 2023, over 12,000 roles, or 6.4 per cent of its workforce, were eliminated. CEO Sundar Pichai took responsibility for these decisions, acknowledging the need for adjustments after periods of rapid growth. He emphasized that these steps were essential for the company's future efficiency.

The layoffs followed a thorough company-wide audit that assessed product areas, functions, and regions across Alphabet. However, Pichai admitted that the company could have managed the layoffs more effectively. Agencies