Google, a division of Alphabet, announced on Wednesday that it is continuing to reduce expenses by laying off hundreds of workers across several divisions, including its Voice Assistant unit, the hardware division responsible for Pixel, Nest, and Fitbit, as well as the augmented reality (AR) and central engineering teams.
This move follows the departure of Fitbit co-founders James Park and Eric Friedman, signalling Alphabet’s ongoing efforts to cut costs and reallocate resources.
Even after paying $2.1 billion to acquire Fitbit in 2021, Google has retained many positions in the hardware sector. This is noteworthy since Google keeps releasing new iterations of the Pixel Watch, which puts it in direct competition with Fitbit and Apple Watch.
A Google representative stated that the personnel decrease is a component of the company’s continuous endeavours to optimize productivity, match resources with product objectives, and adjust to evolving market conditions. While the spokesperson did not specify the exact number of roles affected, the reorganization coincides with the broader industry trend of betting on generative artificial intelligence (AI) technology.
Google’s reorganization is in line with market trends, as businesses like Microsoft and Google are emphasizing generative AI technologies.
Google’s announcement last year to integrate generative AI capabilities into its virtual assistant indicates a broader industry shift. In January 2023, Alphabet revealed plans to cut 12,000 jobs, equivalent to 6% of its global workforce. As of September 2023, Alphabet employed 182,381 people globally, highlighting the scale and impact of these organizational changes.