Google Announces Massive Layoffs: 30,000 Jobs Cut Amid AI Innovation Shift?

Google is reportedly planning a major reorganization within its 30,000-strong ad sales unit due to the company’s significant strides in artificial intelligence (AI). This move follows Google’s record-breaking layoff of approximately 12,000 employees earlier this year, marking the largest job cut in the company’s history.

According to a report by The Information, many roles within the ad sales unit are deemed redundant as Google introduces new AI-based tools capable of automatically suggesting and creating high-performing ads with minimal employee intervention.

The report highlights that the introduction of AI-powered tools, such as Performance Max, has led to a reduction in the need for specialized ad sales roles for specific Google services like YouTube, Search, Display, Discover, Gmail, and Maps. Performance Max, launched in 2021, was enhanced with generative AI capabilities earlier this year at the Google I/O event, enabling the easy creation and scaling of custom assets.

The restructuring news was internally communicated by Google’s President of the Americas and Global Partners, Sean Downey, in a meeting held last week. While details regarding potential job cuts were not explicitly mentioned, the report suggests that the reorganization might lead to a significant reduction in the workforce.

During the meeting, an employee questioned Google CEO Sundar Pichai about the impact of the previous year’s massive layoffs on the company’s growth, profit and loss, and employee morale. Pichai acknowledged the significant impact on employee morale and termed the decision as one of the most difficult in the company’s 25-year history. He justified the layoffs as a difficult but necessary decision, stating that it prevented a more severe impact on the company’s future and allowed for continued investment in key areas.

As Google undergoes this restructuring amid advancements in AI, the tech giant faces questions about the potential consequences for its workforce and the evolving landscape of employment within the company.

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