Google layoffs: It is about taking the time to do it correctly and well, says CEO Sundar Pichai

Google has been slashing its workforce since early 2023, with several rounds of layoffs already completed and more anticipated. CEO Sundar Pichai stated that these difficult decisions are part of a meticulous process, emphasising the need for precision and care: "It's about taking the time to do it correctly and well." 

Speaking to Bloomberg, Pichai acknowledged the weight of his decisions at the helm of such a large organisation, stressing that while the decisions are fewer, they must be clear and well-founded.

Google's strategy for managing these changes involves streamlining operations and reorganising teams. Some teams have been refocused on new initiatives, while others have been disbanded to boost productivity. Pichai described these adjustments as essential to improve the company's operational speed by simplifying team structures.

This workforce reduction strategy is not new; in 2023, Google reduced its employee count by approximately 12,000, mainly impacting the core engineering and hardware sectors. The trend has extended into 2024, affecting several teams in the finance and real estate departments. Additionally, Pichai announced a strategic shift, relocating certain roles to international "growth hubs" in Bangalore, Mexico City, and Dublin to capitalise on local opportunities and expertise, as per media reports.

Pichai also spoke about Google's broader efforts to adapt to changing market demands without expanding headcount. "There’s a lot of demand to do new things which, in the past, we might have met by simply increasing our headcount. We can’t proceed that way during this transition," he explained, while speaking with Bloomberg. This marks a shift from Google's previous growth model to a more considered approach of reallocating existing resources.

Looking forward, Pichai remains optimistic about Google's direction, especially regarding how the company aligns with market demands and consumer preferences. He highlighted ongoing experiments in advertising as an example. “We’ve always found that people want choices, including in commercial areas, and that’s a fundamental need. Our data show that these principles continue to hold true,” he observed.