Alphabet Inc., the parent company of Google, recently announced a reorganization within the company that will result in the layoff of at least 200 employees from its "Core" teams. This move comes just before Google's first-quarter earnings report and is part of a broader effort to streamline operations and optimize resources.
The Core unit at Google is responsible for building the technical foundation behind the company's flagship products and ensuring users' online safety. The eliminated roles include engineering positions at the company's offices in Sunnyvale, California, with many of these roles being relocated to Mexico and India. This restructuring is part of Alphabet's ongoing efforts to operate closer to their partners and developer communities in high-growth global workforce locations.
The layoffs in the Core teams follow a series of reductions in headcount at Alphabet since early last year, when the company announced plans to eliminate about 12,000 jobs. Despite a rebound in digital advertising revenue, Alphabet has continued downsizing, with layoffs across multiple organizations this year.
The reorganization at Google also involves moving some positions within the finance department to Bangalore and Mexico City. Additionally, the company's search boss, Prabhakar Raghavan, announced plans to build teams closer to users in key markets like India and Brazil.
The company's investor call revealed a significant increase in revenue and profit margins, with Alphabet announcing its first-ever dividend and a $70 billion buyback. The layoffs and restructuring within the company are aimed at aligning resources with the company's biggest product priorities and optimizing efficiency.
Google has confirmed the Core reorganization and layoffs, stating that affected employees will have the opportunity to apply for open roles within the company and access outplacement services. The company emphasized that these changes are in service of their broader goals as a company and are necessary to adapt to a changing operating reality with increased competition and regulatory challenges.