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Google CEO warns staff of more job cuts and says company will present AI goals this week

by SuperiorInvest

KEY TAKEAWAYS

  • Google CEO Sundar Pichai told employees in an internal memo that more job cuts will come this year as the company focuses on fast-growing areas such as artificial intelligence.
  • The news follows several hundred job cuts across multiple teams earlier this month, although the CEO said the cuts in 2024 will not be on the same scale as last year.
  • Google is set to reveal AI goals for 2024 this week.

Google is planning additional job cuts this year, as the company moves into fast-growing areas such as artificial intelligence (AI).

In a memo sent to employees on Wednesday, Sundar Pichai, CEO of Google parent Alphabet (GOOGL), said tough decisions need to be made so the company can invest in its priority areas. For some teams, that means eliminating roles, including “removing layers to simplify execution and drive speed,” he added.

The Google CEO’s warning follows hundreds of job cuts earlier this month. Last year, the company laid off 12,000 permanent team members, or about 6% of its workforce.

In the memo titled “Priorities for 2024 and the Year Ahead,” Pichai said staff reductions in 2024 will not be on the same scale as last year. He also noted that the company will this week release its AI goals for 2024, as well as its objectives and key results.

Google launched Gemini, its latest artificial intelligence model with text, code, audio, image and video capabilities, last month. The tech giant claims the model greatly outperforms Microsoft-backed OpenAI’s (MSFT) GPT-4 and could help bolster the company’s position in the AI ​​race.

Shares of Google parent company Alphabet rose 0.6% to $142.33 as of 10:07 a.m. ET.

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