Google has announced a substantial reduction in its workforce, impacting hundreds of employees across various teams. This move includes significant cuts in the Voice Assistant unit and the hardware team responsible for Pixel, Nest, and Fitbit products. Additionally, the augmented reality (AR) team faces the majority of its members being let go, alongside reductions in the central engineering team.
Fitbit Co-Founders Depart Amidst Cost-Cutting Measures
In a notable shift, Fitbit co-founders James Park and Eric Friedman are also exiting the company. This change follows Google’s acquisition of the health and fitness tracking company Fitbit for $2.1 billion in 2021. Despite the acquisition, Google has continued to develop its Pixel Watch, which competes with Fitbit’s devices and the Apple Watch.
Google’s Statement on Organizational Changes
A Google spokesperson explained the rationale behind these decisions. “Throughout the second half of 2023, a number of our teams made changes to become more efficient and work better, and to align their resources to their biggest product priorities. Some teams are continuing to make these kinds of organizational changes, which include some role eliminations globally,” the spokesperson told Reuters.
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Uncertainty Over the Exact Number of Impacted Roles
While the spokesperson did not disclose the specific number of roles affected, the scale of the layoffs indicates a significant reshaping of Google’s workforce. The exact number of people in the Google Assistant software and other affected teams remains unclear.
Generative AI: A New Focus for Google
These organizational changes come as tech giants like Microsoft and Google increasingly invest in generative artificial intelligence (AI) technology, spurred by the success of OpenAI’s ChatGPT. Last year, Google announced plans to integrate generative AI capabilities into its virtual assistant, enabling advanced functionalities like trip planning assistance and email management.
Alphabet’s Broader Workforce Reduction
In January 2023, Alphabet, Google’s parent company, revealed plans to cut 12,000 jobs, representing 6% of its global workforce. As of September 2023, Alphabet had a total of 182,381 employees worldwide. These layoffs are part of a broader trend in the tech industry, as companies recalibrate their strategies and resources in response to evolving market demands and technological advancements.
