Alphabet Inc (NASDAQ: GOOG) (NASDAQ: GOOGL) Google, ahead of its annual I/O developer conference in May, has confirmed layoffs across various vital teams such as Flutter, Dart, Python, and others, according to employee reports on social media.
The tech giant did not specify the teams, roles, or the number of individuals affected, TechCrunch reports.
Google spokesperson Alex García-Kummert explained that these changes aim to align resources with the company's most significant product priorities, improve efficiency, and reduce bureaucracy.
The layoffs are part of regular organizational adjustments and are not company-wide. Google encourages those affected to apply for other available positions within the company.
Despite the cuts, Google PM Kevin Moore assured the Flutter development community that they are still focused on upcoming projects, including new updates for Flutter at the I/O conference.
The company has also filed a WARN notice in California, indicating the layoff of 50 employees across three locations in Sunnyvale.
In 2024, the tech sector surpassed last year's layoff figures, with over 42,324 workers losing their jobs.
This comes after nearly 263,000 tech layoffs in 2023, continuing the industry's trend of job cuts. Major companies, including Google, Amazon.com Inc (NASDAQ: AMZN), Microsoft Corp (NASDAQ: MSFT), Discord, Salesforce Inc (NYSE: CRM), eBay Inc (NASDAQ: EBAY), and PayPal Holdings Inc (NASDAQ: PYPL) have announced significant layoffs in January.
Several factors contribute to this seemingly contradictory situation. Firstly, the rapid advancement in AI technology requires substantial investments in new technologies, prompting companies to reallocate resources and reduce their workforce.
GOOG shares gained 56% in the last 12 months. Investors can gain exposure to the stock via IShares Global Comm Services ETF (NYSE: IXP) and The Communication Services Select Sector SPDR Fund (NYSE: XLC).
Price Action: GOOG shares traded lower by 0.07% at $167.78 on the last check Tuesday.