Google's new US layoffs are to replace core jobs in Mexico and India
Key Takeaways
- Google's parent company, Alphabet, plans to eliminate 6% of its workforce, with recent layoffs affecting core technical teams responsible for flagship products.
- Google is considering moving some roles to India and Mexico, aligning with plans to produce Pixel phones in India and open an engineering hub in Taiwan.
- Despite record earnings for Alphabet, Google continues to make layoffs and transfer more positions to countries with cheaper labor costs, signaling ongoing reshaping.
In the early months of 2023, a significant shift reverberated across the tech industry, as companies grappled with an economic slowdown and post-COVID reformation. Among them, Google's parent company, Alphabet, made a substantial announcement, revealing plans to eliminate 12,000 jobs, a staggering 6 percent of its workforce. As we approach the midpoint of 2024, these job-cut plans remain in effect, signaling a continued reshaping of Google's operations.
Related
According to a report by CNBC, Google has confirmed the layoff of 200 staff from its "Core" business departments. These teams are the technical masterminds behind the company's flagship products and are responsible for ensuring user safety. They encompass key units from IT, engineering, technical infrastructure, security foundation, and app platforms, all of which are integral to Google's operations.
More Google business units are leaving the US for India, Mexico, and beyond
While laying off such high-profile teams might be a big sorrow for Google, the company is considering moving some of these roles to India and Mexico. According to internal documents viewed by CNBC, at least 50 engineering positions have been axed from Google's offices in Sunnyvale, California. Meanwhile, empty positions will be filled by hiring corresponding roles in Mexico and India.
Google's move to India and Mexico aligns with the company's announcement last year to start producing Pixel phones in India. Additionally, Google has recently opened a new hardware and engineering hub in Taiwan to reinforce the Pixel's development outside the United States.
Asim Husain, vice president of Google Developer Ecosystem, gave employees the layoff news last week. In an email to laid-off employees, Husain said, "We intend to maintain our current global footprint while also expanding in high-growth global workforce locations so that we can operate closer to our partners and developer communities."
Google's decision to ditch positions its Core business units coincided with Alphabet's massive earnings report, which set an all-time record for the year's first quarter. In Q1 2024, Alphabet earned $80.54 billion in revenue, a 15 percent growth from $69.8 billion in Q1 2023. However, even financial reports that paint a rosy picture of the company's situation couldn't stop Google from laying off its staff.
Google's financial department and Search leads have already informed employees that more positions will be moved to India, Mexico, and Brazil. These countries are reportedly key to Google's business. More importantly, they have cheaper labor, which could save Google a sum of money each year. With that in mind, more Google employees are likely to get layoff emails in the years ahead.