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Google’s continuous layoffs: more than $700 million was spent on employee severance.

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Google has announced further layoffs, which has resulted in the company spending $700 million in severance charges after cutting over 1,000 roles. In 2023, the tech giant had cut 12,000 employees, spending $2.1 billion, with CEO Sundar Pichai warning of more cuts in the future. This news came along with Alphabet’s (Google’s parent company) fourth-quarter earnings report, showing double-digit revenue growth driven by YouTube and cloud computing. However, ad sales growth lagged behind other areas, causing the company’s stock to drop after the announcement.

Interestingly, Alphabet attributes its profit boost over the past quarter to increased investments in artificial intelligence. According to Pichai, AI is a key driver for all Google’s endeavors, stating, “Each of these is already benefiting from our AI investments and innovation.” Amidst cost-cutting measures and restructuring, Google continues to prioritize innovation and investment in AI. This focus on technology advancement and revenue growth suggests that the company aims for long-term success while adapting to changing market dynamics.

Pichai’s memo to employees acknowledged the difficulty of the cuts but emphasized their necessity for “creating the capacity for this investment.” He promised to streamline operations by “removing layers” in various departments but assured employees that the cuts would not be as extensive as last year’s. The restructuring is targeting departments such as hardware, advertising, and search and is likely to continue throughout the year. Pichai warns employees to expect further job cuts in the future, emphasizing that these measures are not a reflection of individual performance but are necessary to “make tough choices” and position Google for ambitious goals.

Google’s continued focus on streamlining operations through AI integration and personnel reduction suggests a company in flux. While Pichai assures that future cuts won’t be as extensive as those in 2023, the message is clear: Google is prioritizing efficiency and restructuring, and further job cuts may occur in the coming months.


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