Ahead of its recent successful financial report, Google made significant changes within its organisation, resulting in the layoff of at least 200 employees from its "Core" teams. These changes, as reported by CNBC, involve relocating some roles to India and Mexico.
The Core unit, responsible for building the technical backbone of Google's flagship products and ensuring users' online safety, saw a restructuring. Key technical units including information technology, Python developer team, technical infrastructure, security foundation, app platforms, core developers, and various engineering roles were affected.
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Records indicate that at least 50 engineering positions in Sunnyvale, California, were eliminated. Internal documents suggest that many roles from Core teams will be relocated to Mexico and India.
Asim Husain, Google's Vice President of Developer Ecosystem, communicated the layoffs to his team via email, marking it as the largest planned reduction for his team this year. He emphasised the company's intention to maintain its global presence while expanding in high-growth locations to operate closer to partners and developer communities.
Google's parent company, Alphabet, has been reducing its workforce since early last year due to challenges in the online advertising market. Despite recent improvements in digital advertising, Alphabet continued downsizing, with layoffs across various departments this year.
The company's finance department underwent restructuring in mid-April, with layoffs and position movements to Bangalore and Mexico City announced by Chief Financial Officer Ruth Porat. Prabhakar Raghavan, Google's search boss, stated plans to build teams closer to users in key markets like India and Brazil, where labour costs are lower.
Despite these layoffs, Google reported its fastest growth rate since early 2022 and improved profit margins in the first quarter. The company announced its first-ever dividend and a $70 billion buyback.
Husain reassured developers that the changes serve broader company goals. The reorganisation mainly affects teams crucial to Google's developer tools, as the company integrates more artificial intelligence into its products. Google's upcoming developer conference, Google I/O, will likely unveil new developer products and tools.
Pankaj Rohatgi, Google's Security Engineering Vice President, announced role eliminations as the company expands work to other locations. The layoffs also impact the governance and protected data group, crucial amid increasing regulatory scrutiny, such as the European Union's Digital Markets Act.
Evan Kotsovinos, Google's Vice President of Governance and Protected Data, highlighted the team's need to respond to regulatory challenges by moving faster. Raghavan acknowledged heightened competition, a challenging regulatory environment, and slower organic growth as Google's new operating reality.
