Google and Microsoft layoff thousands of employees to reduce costs
Google and Microsoft layoff thousands of employees to reduce costs
7 June 2024
Pune- Google and Microsoft, both big tech companies, have started restructuring departments, resulting in thousands of employees being laid off. This decision has been taken to increase the capabilities of Artificial Intelligence (AI). Google’s CEO, Sundar Pichai, has announced the changes in a recent internal memo with an assurance that the cuts will be reduced by mid-2024.
The technology sector is keen on experimenting with AI to get the desired outcome therefore, many tech companies are undergoing massive cuts over the past few months. Google and Microsoft have also cut about 1000 people in their respective organizations. According to reports, about 100 employees from the Google Cloud division and about 1000 from Microsoft have been asked to leave the company.
Such cuts will not cease soon which is a matter of concern in the market, even though both companies are making massive workforce changes to expand their dominance in the AI sector. Google Cloud has cut around 100 employees in its sales and engineering division to reduce costs. However, the cuts are not limited to that department, they are taking place throughout various others in the company including engineers working in Indian and Mexican branches. The CEO has stated that the cuts will slow down by mid-2024.
While Microsoft announced its fresh round of layoffs on Monday. The layout has affected the mixed reality department that had been working on Hololens 2 with the Azure domain for Operators and Mission Engineering. Here too, the layoffs seem to be a part of the restructuring initiative. Last year, Microsoft laid off over 10,000 workers. Reportedly, CEO Satya Nadella had stated that the company was changing its hardware portfolio.
In the first week of June, a total of seven tech companies announced layoffs. They include-
1. Orcam, an Israel-based startup, announced that it will let go of as many as 100 employees from its marketing division. The company had laid off staff in February too.
2. Oda, a Norway-based online supermarket delivery startup, confirmed that it was laying off 150 workers as the company desires to scale back its expansion plans.
3. Pagaya, another Israeli company, announced plans to lay off 100 employees across different departments.
Google had laid off several hundred workers across multiple divisions in an attempt to reorganize its Pixel, Nest, and Fitbit divisions in January 2024.
