Tech

Google CEO Sundar Pichai explains why the company keeps doing layoffs

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Sundar Pichai said Google's layoffs have been intentional. Justin Sullivan/Getty
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Google has conducted multiple rounds of layoffs this year — and the slow burn is intentional.

CEO Sundar Pichai told Bloomberg reporter Emily Chang that the company is "taking the time to do it correctly and well."

Though Pichai has received criticism of his leadership and the culture around layoffs, he said that as a leader of a large company, he makes "fewer consequential decisions, but they need to be clear."

He said in some cases, Google is simplifying teams, and in others, it's moving people to focus on new areas. The company is also removing some teams entirely to "improve velocity."

Google cut about 12,000 people in 2023 and started off 2024 with thousands more laid off. Areas ranging from core engineering to hardware teams have been affected.

At the time, Pichai said more layoffs were to come — and they did.

In April, the company laid off more staff from several finance and real-estate teams. It also announced it would move roles to Bangalore, Mexico City, and Dublin to build out its "growth hubs."

Google declined to say how many employees have been impacted by layoffs so far this year.

Pichai said in the interview that Google is "reallocating people" to its "highest priorities."

The cuts are an attempt to cut back on costs as the company develops its AI and cloud-computing capabilities. Some of these advancements include the creation of an ARM-based central processing unit, making TPU v5p more widely available, the release of Gemini 1.5, and various changes to Google Workspace.

In a layoff announcement from last year, Pichai said Google experienced "dramatic growth" over the past two years, which led to hiring "for a different economic reality than the one we face today."

A Google spokesperson told Business Insider that the company made a number of changes to become more efficient, remove layers, and align resources to its biggest priorities.

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Ana Altchek standing headshot
Ana Altchek
Ana  writes about workplace trends and how AI is reshaping the roles of software engineers. She also regularly interviews C-suite executives about their career trajectories and leadership insights.Ana hosts a weekly video series called "Work Shift," which breaks down the biggest workplace news of the week. She holds a master’s degree in multimedia journalism from NYU and has been featured on BBC, NPR, and other global media platforms.Have a tip? You can contact her via email at aaltchek@bjinnox.com or through the secure-messaging app Signal at aalt.19.