Google has undertaken a reorganization of its “Core” teams, leading to the layoff of at least 200 employees, CNBC has learned.
The Core unit is responsible for building the technical foundation behind the company’s flagship products and for protecting users’ online safety. At least 50 of the eliminated positions were in engineering at the company’s offices in Sunnyvale, California. Asim Husain, vice president of Google Developer Ecosystem, announced the layoffs to his team in an email last week, stating that this was the biggest planned reduction for his team this year. Husain emphasised that the changes are “in service of our broader goals” as a company.
The teams involved in the reorganisation have been key to the company’s developer tools, an area Google is streamlining as it incorporates more artificial intelligence into its products. This move comes as Google prepares for its annual developer conference, Google I/O, where the company traditionally reveals new developer products and tools.
Alphabet, Google’s parent company, has been slashing headcount since early last year, following a downturn in the online ad market. Even with digital advertising rebounding recently, Alphabet has continued downsizing, with layoffs across multiple organisations this year.
The Core layoffs also include the governance and protected data group, which will be at the centre of regulatory challenges facing the company, particularly as lawmakers across the globe focus more on developments in AI.Google confirmed the Core reorganisation and layoffs, stating that employees will be able to apply for open roles within the company and access outplacement services.