Google has reportedly laid off hundreds of employees from its “Core” organization while relocating positions to India and Mexico. According to a report by CNBC, the tech giant Google is restructuring its workforce, specifically impacting its “Core” teams responsible for building the technical foundation behind the company’s flagship products and ensuring online safety. The reorganization has resulted in the layoff of at least 200 employees, with a significant number coming from engineering roles at the company’s Sunnyvale, California offices.
This move is part of Google’s broader strategy to expand its global footprint and operate closer to key partners and developer communities in high-growth regions. As a result, many of the eliminated positions from the Core teams will be replaced by corresponding roles in India and Mexico, where labor costs are lower than in the United States.
Asim Husain, Vice President of Google Developer Ecosystem, addressed the changes in an email to his team, acknowledging the uncertainty and frustration that such announcements may cause. He emphasized that the restructuring aligns with the company’s broader goals and aims to maintain its global presence while expanding in strategic locations.
The Core unit plays a vital role in Google’s operations, encompassing key technical units such as information technology, Python developer teams, technical infrastructure, security foundations, app platforms, core developers, and various engineering roles. The layoffs and subsequent relocation of roles reflect Google’s efforts to streamline its developer tools and incorporate more AI into its products.
The restructuring comes as Google prepares for its annual developer conference, Google I/O, scheduled for May 14. The event traditionally serves as a platform for the company to unveil new developer products and tools developed over the previous year. Recent advances in generative AI, including Google’s Gemini model, are changing the nature of software development, highlighting the significance of the Core teams in navigating this pivotal shift.
Google’s decision to expand its workforce in India and Mexico aligns with the company’s broader strategy of building teams closer to users in key markets. This move follows a series of cost-cutting measures implemented by the tech giant, including the layoff of approximately 12,000 employees announced early last year in response to a downturn in the online advertising market.
Despite the ongoing restructuring efforts, Google reported solid financial results for the first quarter of 2024, with a significant jump in revenue compared to the previous year. The company also announced its first-ever dividend and a $70 billion share buyback program, indicating confidence in its future growth prospects.
