Google announces job cuts for hundreds of 'Core' employees while shifting some positions to India and Mexico.

Google announces job cuts for hundreds of 'Core' employees while shifting some positions to India and Mexico.
Google announces job cuts for hundreds of 'Core' employees while shifting some positions to India and Mexico.
  • At least 200 employees from Google's "Core" organization, including important teams and engineering talent, have been let go, according to CNBC's sources.
  • In response to the unit's restructuring, the company will be recruiting matching positions in Mexico and India.
  • Google Developer Ecosystem Vice President Asim Husain wrote in an email to his team last week that announcements of this type may leave many of you feeling uncertain or frustrated.

CNBC has learned that just before its first-quarter earnings report, laid off at least 200 employees from its "Core" teams as part of a reorganization that involves moving some roles to India and Mexico.

According to Google's website, the company's flagship products are built on a technical foundation created by its Core unit, which includes key technical units from information technology, its Python developer team, technical infrastructure, security foundation, app platforms, core developers, and various engineering roles.

According to CNBC, many of the Core teams at the company's offices in Sunnyvale, California, will hire corresponding roles in Mexico and India, as shown in internal documents.

Last week, Asim Husain, vice president of Google Developer Ecosystem, informed his team of some layoffs through an email. He also disclosed that this was the largest planned reduction for his team this year during a town hall meeting, according to an internal document.

In the email, Husain stated that the company aims to keep its current global presence while simultaneously expanding in high-growth global workforce locations to be nearer to its partners and developer communities.

Despite a recent rebound in digital advertising, Alphabet has continued to reduce its workforce by laying off employees across various departments.

Ruth Porat, the CFO of the company, announced in mid-April that the finance department would undergo a restructuring, which included layoffs and moving positions to Bangalore and Mexico City. Prabhakar Raghavan, the search boss, informed employees at an all-hands meeting in March that Google plans to establish teams closer to users in crucial markets, such as India and Brazil, where labor is more affordable than in the U.S.

Alphabet reported a 15% increase in first-quarter revenue from the previous year and announced its first-ever dividend and a $70 billion buyback, coinciding with the company's fastest growth rate since early 2022 and improving profit margins.

Alphabet's investor call had a 'remarkable' level of transparency, says Jim Cramer

Developers may feel uncertain or frustrated with announcements of this sort," Husain wrote in his email. He emphasized that the changes were "in service of our broader goals as a company.

The teams responsible for the reorganization have played a crucial role in the development of Google's AI-powered chatbot, which was recently renamed from Bard to Gemini.

Google I/O, the annual developer conference of Alphabet, is set to take place on May 14. During this event, the company typically unveils new developer products and tools that have been in development throughout the previous year. According to a memo from Husain, generative AI is currently at a "turning point."

Advances in Generative AI, such as Google's Gemini, are transforming software development.

Pankaj Rohatgi, the security engineering vice president, informed his team that they will be expanding work to other locations, which may result in some role eliminations and proposed role eliminations.

The governance and protected data group, which will face regulatory challenges due to their central role in AI developments, are among the Core layoffs at the company. The European Union's Digital Markets Act (DMA) was implemented in March and aims to combat anti-competitive practices in tech.

Last week, Evan Kotsovinos, Google's vice president of governance and protected data, communicated about the upcoming changes in an email.

The team's success, according to Kotsovinos, depends on quickening its pace in response to intensifying regulatory scrutiny.

Google's senior vice president in charge of search, Raghavan, has stated that the company is facing increased competition, a tougher regulatory landscape, and slower organic growth as its "new normal."

Google has confirmed its Core reorganization and layoffs, and a spokesperson informed CNBC that employees can apply for open positions within Google and receive outplacement services.

"The spokesperson stated in an email that our company is investing in our top priorities and opportunities while making changes to improve efficiency and align resources with our biggest product priorities."

WATCH: Google alumni-led startups turn up pressure on top AI companies

Google alumni-led startups turn up pressure on top AI companies
by Jennifer Elias

Technology