Pichai explained that some teams will need to eliminate roles to simplify execution and drive velocity. The company has also introduced other cost-cutting measures such as freezing employees’ wages, reducing spending on employees’ hardware, and consolidating some of its real estate holdings. However, the layoffs are not expected to be as severe as last year's and will not affect every team. Despite these measures, some investors are calling for even more job cuts.
Key takeaways:
- Google CEO Sundar Pichai has warned that more job cuts will be necessary this year to achieve the company's 'ambitious goals', particularly in areas such as artificial intelligence.
- The company began its cost-cutting efforts in January 2023, eliminating 12,000 jobs, and has since made further cuts in its Fitbit, Nest, Pixel hardware units, and advertising business.
- Despite these measures, some investors are calling for even more job cuts, with Sir Christopher Hohn of The Children’s Investment Fund suggesting the company should reduce its headcount to 150,000 by axing up to 30,000 workers.
- Google has also introduced other cost-cutting measures such as freezing employees' wages, reducing spending on employees' hardware, and consolidating some of its real estate holdings in the U.S.