Tuesday, May 21, 2024

Google offshores 200 “Core” tech jobs after employee layoffs in the US

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In another round of employee layoffs in the US, Google has cut 200 jobs in its “Core” technology departments. Incidentally, the company hasn’t eliminated the positions or reduced the overall workforce. Google has reportedly transferred these jobs to Mexico and India.

Google removing employees in America, hiring in Mexico and India

According to CNBC, Google has laid off at least 200 employees from its offices in the US. Incidentally, employees who were let go were working on core technologies.

The Core Technologies unit comprises highly technical and skilled employees. These employees, several of whom have been with Google for many years, build and maintain the technical foundation of Google products.

Simply put, these employees are responsible for the core technologies that drive a large number of Google’s flagship products and services. Google claims that the Core Technologies department is critical for protecting users’ online safety.

Some of the departments that qualify as Core Technologies include the Python developer team, technical infrastructure, security foundation, app platforms, core developers, and various engineering roles.

The employee layoffs in the Core Tech departments at Google also include the Governance and protected data group. Needless to say, this could create some challenges for the company especially because the company is grappling with regulators around the globe.

Google’s offices in Sunnyvale, California witnessed some of the largest terminations. However, Google hasn’t eliminated the positions. The company has reportedly transferred these jobs outside the US, mainly to Mexico and India.

Alphabet in a very large restructuring and reorganizing exercise

The last couple of years have witnessed massive layoffs across the majority of tech giants. Google has been one of the leading companies in cutting jobs.

Last year, Google announced plans to eliminate about 12,000 jobs or 6% of its workforce. The company has blamed this gargantuan downsizing on the downturn in the online ad market. However, even with digital marketing experiencing an upswing, Google hasn’t reversed its course.

Google’s parent company Alphabet has continued to lay off employees across several departments. Google is now claiming the company is in the midst of a foundational reorganization exercise.

The company’s CFO (Chief Financial Officer) Ruth Porat had recently indicated the company’s finance department would undergo restructuring. What the CFO may have indicated was the company would lay off its employees in the US, and move the roles or positions to Bangalore (India) and Mexico City (Mexico).

According to Prabhakar Raghavan, who heads Google Search, “Google plans to build teams closer to users in key markets, including India and Brazil.” He even implied that Google’s decision to shift jobs hinged on cheaper labor costs compared to the US.

Google and several other tech giants have been experiencing record growth. The last two years have been quite good for most of the tech companies. It is concerning to note that despite record growth, these companies haven’t reversed course as far as layoffs are concerned.

Several reports suggest Google and many other companies are betting big on Generative Artificial Intelligence (Gen AI). Google even merged two of its biggest and most diverse departments to infuse AI into several products quickly. This could be one of the reasons for the layoffs.

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