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 workers that extra job cuts are coming this 12 months as the corporate continues to shift investments towards areas like synthetic intelligence.
In a memo titled “2024 priorities and the year ahead” that staffers acquired 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 as much as share its AI targets for the 12 months 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 which means 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 indicators continued price cuts at Google following quite a few rounds of layoffs that started in January of 2023, when the corporate introduced it was eliminating 12,000 jobs, or roughly 6% of the full-time workforce. Google additionally reduce on some perks in addition to laptops and gear.
Since the calendar turned, Google has minimize a number of hundred extra jobs in areas together with central engineering, {hardware} and promoting.
Pichai stated in Wednesday’s memo that, “to be upfront, some teams will continue to make resource allocation decisions.” He stated layoffs received’t be on the scale of final 12 months’s reductions and “will not touch every team.”
Shares of Google mother or father Alphabet jumped 55% final 12 months as tech shares rallied following a brutal 2022, pushed partly by pleasure about AI. Revenue within the third quarter returned to double-digit development alongside a rebound within the digital advert market.
Last month, Google launched its largest and most succesful AI mannequin, Gemini. In some exams, the mannequin’s efficiency incrementally surpassed the GPT-4 mannequin from OpenAI, creator of ChatGPT.
WATCH: Google to chop a whole bunch of jobs as large tech layoffs proceed
Source: www.cnbc.com”