KEY TAKEAWAYS
- Google CEO Sundar Pichai told employees in an internal memo that additional job cuts are coming this year as the company focuses on fast-growing areas such as artificial intelligence.
- The news follows several hundred job cuts across various teams earlier this month, though the CEO said that the cuts in 2024 won’t be on the same scale as last year.
- Google set to unveil AI goals for 2024 this week.
Google is planning additional job cuts this year, as the firm pivots further into fast-growing areas such as artificial intelligence (AI).
In a memo sent to employees Wednesday, Sundar Pichai, chief executive officer of Google-parent Alphabet (GOOGL), said that tough choices need to be made in order for the company to be able to invest in its priority areas. For some teams that means eliminating roles, which includes “removing layers to simplify execution and drive velocity,” he added.
The Google CEO’s warning follows hundreds of job cuts earlier this month. Last year, the company let go of 12,000 permanent team members, or around 6% of its workforce.
In the memo titled “2024 priorities and the year ahead,” Pichai said the headcount reductions in 2024 won’t be on the same scale as last year. He also noted that the company will unveil its AI goals for 2024, as well as its objectives and key results, this week.
Google launched Gemini, its latest AI model with text, code, audio, image, and video capabilities, last month. The tech giant claims the model largely outperforms Microsoft-backed (MSFT) OpenAI’s GPT-4 and could help bolster the company’s position in the AI race.
Shares in Google’s parent company Alphabet were up 0.6% at $142.33 at 10:07 a.m. ET.
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