Google recently underwent a reorganization within its “Core” teams, resulting in the layoff of at least 200 employees. The Core unit is responsible for building the technical foundation of the company’s flagship products and ensuring user safety online. The restructuring included moving some roles to India and Mexico, with key technical units like information technology, Python developer team, security foundation, and core developers being affected.
Despite the layoffs in the Core teams, Google plans to hire corresponding roles in Mexico and India. This move aims to maintain the company’s global footprint while also capitalizing on the high-growth potential of workforce locations in these countries. Asim Husain, vice president of Google Developer Ecosystem, highlighted the importance of expanding in global workforce locations to operate closer to partners and developer communities.
Alphabet, Google’s parent company, has been slashing headcount since early last year, following a downturn in the online ad market. The company announced plans to eliminate about 12,000 jobs, with ongoing downsizing initiatives. Chief Financial Officer Ruth Porat revealed restructuring plans for the finance department, involving layoffs and moving positions to Bangalore and Mexico City. These changes reflect Alphabet’s strategy to optimize its workforce and operations.
Google’s search boss, Prabhakar Raghavan, emphasized building teams closer to users in key markets like India and Brazil, where labor costs are lower than in the U.S. This strategic approach allows Google to leverage cost-effective resources while maintaining operational efficiency. The company aims to align its workforce strategy with market demands and growth opportunities in emerging economies.
The teams affected by the recent reorganization play a crucial role in developing Google’s developer tools, an area undergoing streamlining efforts as the company integrates more artificial intelligence into its products. Google’s chatbot, previously known as Bard, was rebranded as Gemini, aligning with the suite of AI models powering it. This shift toward AI-driven technologies reflects Google’s commitment to innovation and enhancing user experiences.
The Core layoffs also impacted the governance and protected data group at Google, which plays a central role in addressing regulatory challenges related to AI developments. With the European Union’s Digital Markets Act focusing on anti-competitive practices in the tech industry, Google’s governance and data protection strategies are under scrutiny. Evan Kotsovinos, Google’s vice president of governance and protected data, emphasized the company’s responsible investment in addressing regulatory concerns and seizing future opportunities.
Google’s recent reorganization and layoffs within its Core teams signify a strategic shift in workforce management and operational efficiency. By expanding in global workforce locations, optimizing financial resources, focusing on key markets, enhancing developer tools with AI, and addressing regulatory challenges, Google aims to position itself for sustainable growth and innovation in a competitive market landscape. The company’s decision to streamline operations and realign its workforce underscores its commitment to driving long-term success and adapting to evolving industry trends.