Google to cut 12,000 jobs

Six per cent of the workforce to go as search and ad tech giant latest to announce layoffs, wants to refocus on AI

Google is to lay off approximately 6% of its workforce and refocus on its priorities, including AI, according to an email sent to staff on Friday by CEO Sundar Pichai. The email was followed up by a blog post.

"We've decided to reduce our workforce by approximately 12,000 roles. We've already sent a separate email to employees in the US who are affected. In other countries, this process will take longer due to local laws and practices," Pichai wrote.

Pichai said the company will be reviewing its current operations in order to make the most of its early investments in AI.

"To fully capture it, we'll need to make tough choices. So, we've undertaken a rigorous review across product areas and functions to ensure that our people and roles are aligned with our highest priorities as a company."

The job cuts will affect all areas and regions of parent company Alphabet's business. Details have not yet been made public.

Like other US technology companies, Alphabet has been affected by the weak global economy and the strong dollar. It is also reported to have been shaken by the sudden emergence of the advanced AI chatbot ChatGTP and image generator DALL-E2 as a potential threat to its own AI ventures, which include DeepMind. Last year, Google was reported to be treating ChatGTP as 'code red', and reassigning various departments "to help develop and release new AI prototypes and products".

ChatGTP, which is able to answer a wide variety of complex questions in a human-like way, and DALL-E2, a system that can create realistic images from a description in natural language, were both developed by OpenAI, an outfit in which Microsoft has a $1 billion stake. Microsoft is reported to be mulling a further $10 billion investment in OpenAI, and asking for 75% of OpenAI's profits until it recoups its investment. It is also integrating ChatGTP into its Office suite and search engine, Bing, which will make it a major player in AI.

But none of the technology giants are immune to the prevailing conditions. This week, Microsoft announced 11,000 job cuts in its HoloLens, advertising and marketing departments.

Other companies announcing layoffs in recent weeks include Amazon, Meta, Citrix, Tibco, Informatica, Salesforce, Cisco, HP, Intel, Elastic and Aqua Security.