Google CEO says more job cuts are needed in 2024 in order to reach ‘ambitious goals’

Sundar Pichai, CEO of Google and Alphabet, speaks on synthetic intelligence throughout a Bruegel assume tank convention in Brussels, Belgium, on Jan. 20, 2020.

Yves Herman | Reuters

Google CEO Sundar Pichai is warning staff that more job cuts are coming this yr as the corporate continues to shift investments towards areas like synthetic intelligence.

In a memo titled “2024 priorities and the year ahead” that staffers obtained Wednesday night, Pichai stated, “we have ambitious goals and will be investing in our big priorities this year.” In the memo, which was obtained by CNBC, Pichai stated firm management is gearing up to share its AI targets for the yr this week and can publish its 2024 OKRs (targets and key outcomes).

“The reality is that to create the capacity for this investment, we have to make tough choices,” Pichai wrote. For some groups meaning eliminating roles, which incorporates “removing layers to simplify execution and drive velocity,” he added.

The Verge was first to report on the memo. A Google spokesperson did not instantly reply to a request for remark.

Pichai’s newest messaging alerts continued price cuts at Google following quite a few rounds of layoffs that started in January of 2023, when the corporate announced it was eliminating 12,000 jobs, or roughly 6% of the full-time workforce. Google additionally cut back on some perks in addition to laptops and tools.

Since the calendar turned, Google has cut several hundred additional jobs in areas together with central engineering, {hardware} and advertising.

Pichai stated in Wednesday’s memo that, “to be upfront, some groups will proceed to make useful resource allocation choices.” He stated layoffs received’t be on the scale of final yr’s reductions and “will not touch every team.”

Shares of Google dad or mum Alphabet jumped 55% final yr as tech shares rallied following a brutal 2022, pushed in half by pleasure about AI. Revenue in the third quarter returned to double-digit progress alongside a rebound in the digital advert market.

Last month, Google launched its largest and most succesful AI mannequin, Gemini. In some checks, the mannequin’s efficiency incrementally surpassed the GPT-4 mannequin from OpenAI, creator of ChatGPT.

WATCH: Google to cut hundreds of jobs as big tech layoffs continue

Google to layoff hundreds as big tech layoffs continue in 2024

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