Alphabet’s Google has laid off hundreds of employees within its Platforms and Devices unit, which oversees key products such as Android software, Pixel phones, and the Chrome browser. 

Reports highlight that the layoff came after the company made buyout offers to the division’s employees in January.

A Google spokesman said the layoffs are intended to make the organization more nimble and effective following the merger of the Platforms and Devices teams last year.

Workforce streamlining continues as Google offers voluntary exits and restructures teams

Google distributed a memo to all employees working on Android, Pixel hardware, and other projects that offers a “voluntary exit program.” The memo guaranteed severance for anyone willing to step away from their role at the company.

Since combining the Platforms and Devices teams last year, the company has streamlined operations, which has resulted in some layoffs, a representative from Google said.

This was not the first time Google reduced its employees in its division. Reports from sources in February revealed that Google announced that it had reduced staff in its cloud division, but that only a small number of teams were affected.

In January 2023, Alphabet announced plans to cut 12,000 jobs or 6% of its global workforce.

While these changes have raised employee concerns about job security, Google has emphasized that the goal is to realign resources to focus on strategic priorities, including integrating artificial intelligence across its product lines. The company has not responded to requests for further comments on the recent layoffs.

Tech companies choose to hire cheaper foreign labor or cut staff in the face of rising AI investment

Google announced on February 26 that it would be cutting staff in its cloud division, impacting fewer than 100 employees in sales operations.

The cuts were intended to free up resources for investments in the company and artificial intelligence, the person said, speaking on condition of anonymity because the decision was not public.

A Google representative added that the company continued to make changes to better meet customer needs and seize the substantial opportunities in front of it.

These changes are part of our ongoing work across teams across the company to invest in the critical areas that will drive long-term success, the spokesperson said.

In the meantime, the cloud layoffs occurred as the tech sector had made it a practice to lay off corporate employees roughly every year.

In support of this, several companies, including Microsoft Corp., Salesforce Inc., Amazon.com Inc., and Meta Platforms Inc., have stated that they would either fire underperforming staff members or look to hire cheaper foreign labor as the companies were under pressure to make investments in AI technologies without risking profits.

Furthermore, reductions in Google’s cloud workforce came after the company made smaller downsizing efforts. It is worth noting that Google made cuts throughout 2024 that began in one division and gradually spread to the entire company as it reorganized, division by division.

Google Cloud was still a major investment area because it was thought to be one of the company’s best chances for expansion as the search industry developed. During the February earnings call, Alphabet Chief Financial Officer Anat Ashkenazi stated that the company anticipated some headcount growth in 2025 in important investment areas like cloud and artificial intelligence.

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