Google Implements Further Restructuring, Slashes Hundreds of “Core” Employees, Relocating Some to India and Mexico

By Moon Harper

May 02, 2024 12:30 AM EDT

Just before its impressive first-quarter earnings report on April 25, Google laid off over 200 employees from its Core teams, which will involve transferring certain roles to India and Mexico, as reported by CNBC.

Google Slashing Its Core Division

The Core division, tasked with constructing the technical foundation of Google's main products and safeguarding users' online security, underwent a restructuring that impacted several key technical units, including information technology, the Python developer team, technical infrastructure, security foundation, app platforms, core developers, and various engineering positions. Records show that at least 50 engineering positions in Sunnyvale, California, were cut, while internal documents indicate that numerous roles from Core teams will be moved to Mexico and India.

Asim Husain, Google's Vice President of Developer Ecosystem, emailed his team about the layoffs, labeling them the biggest planned reduction for his team this year due to the company's commitment to sustaining its global presence while expanding in high-growth areas and working more closely with partners and developer communities.

A Google spokesperson verified the cuts and mentioned that affected workers will have the opportunity to apply for other available positions within the company. Additionally, Google has provided outplacement services and required severance offerings.

Alphabet Trimming Workforce Due to Market Challenges

Alphabet, Google's parent company, has been trimming its workforce since early last year due to challenges in the online advertising market. Despite recent improvements in digital advertising, Alphabet has persisted with downsizing, resulting in layoffs across various departments this year.

In mid-April, the company's finance department underwent restructuring, as announced by Chief Financial Officer Ruth Porat, involving layoffs and position relocations to Bangalore and Mexico City. Prabhakar Raghavan, Google's search head, expressed intentions to establish teams closer to users in important markets such as India and Brazil, where labor costs are comparatively lower.

Despite the layoffs, Google reported its quickest growth rate since early 2022, enhanced profit margins in the first quarter, and revealed its inaugural dividend and a $70 billion buyback.

Google Embracing Its New Operating Reality

Husain assured developers that the changes align with broader company objectives, primarily impacting teams essential to Google's developer tools, which reflects the company's increased integration of artificial intelligence into its products. The upcoming Google I/O developer conference is expected to introduce new developer products and tools.

Pankaj Rohatgi, Google's Security Engineering Vice President, disclosed role eliminations as the company extended its work to additional locations. The layoffs also affect the governance and protected data group, which is significant amidst rising regulatory scrutiny, including the European Union's Digital Markets Act.

Evan Kotsovinos, Google's Vice President of Governance and Protected Data, underscored the team's imperative to address regulatory challenges faster. Raghavan acknowledged intensified competition, a demanding regulatory landscape, and slower organic growth as Google's evolving operating reality.