Amid Fears Of Recession, Google Fires Hundreds Of Employees From Android, Pixel, Chrome Teams

Amid the fears of a looming recession, Alphabet's Google has fired hundreds of employees from its Platforms and Devices division. The unit works on the Android software, Pixel phones and the Chrome browser, The Information reported. The reduction in the workforce follows the company's January buyout offers to employees in the unit

This reshuffling began in 2023 when Google merged its Android and Chrome teams with the Pixel hardware division under Rick Osterloh's leadership. The combined unit, which once had over 20,000 employees, is now streamlining operations to boost efficiency.

What The Company Says?

"Since combining the Platforms and Devices teams last year, we've focused on becoming more nimble and operating more effectively and this included making some job reductions in addition to the voluntary exit program that we offered in January," The Information quoted a Google spokesperson as saying.

This isn't Google's first workforce trim-last year, it slashed 6% of its global staff (~12,000 jobs). While the latest cuts are smaller, they add to a wave of tech layoffs in 2024. Earlier this year, Google also offered buyouts to US-based employees in Android, Pixel, and Chrome teams, particularly those struggling with hybrid work policies or those misaligned with the division's new direction.

Meanwhile, Google's cloud division saw limited job cuts in February, per Bloomberg, though most teams remained unaffected. With around 180,000 employees still on its payroll, the tech giant appears to be balancing cost-cutting with strategic investments in high-growth areas like AI.

In December, Sundar Pichai, CEO of Google, declared a 10% reduction in the company's managerial roles. This decision, affecting directors and vice presidents, is a strategic move to increase efficiency amidst the escalating competition from AI enterprises and economic hurdles.

The rationale behind these layoffs was rooted in Google's quest for greater efficiency and adaptability in the face of AI advancements and economic challenges. Since 2022, Pichai has been steering Google towards a 20% increase in efficiency. This journey towards streamlining operations saw a significant reduction in workforce in 2023, with over 12,000 employees being laid off.