In a recent development, Google has initiated a series of layoffs affecting multiple departments, including engineering and hardware, in a move aimed at reducing costs. Fitbit co-founders James Park and Eric Friedman are among those who have been let go.
The layoffs extend across various teams, with the Voice Assistant and hardware teams for Pixel, Nest, and Fitbit taking a substantial hit. Google clarified that the majority of cuts will occur in the augmented reality (AR) team and the central engineering team, impacting hundreds of roles.
Despite Google’s acquisition of Fitbit in 2021 for $2.1 billion, the company continues to release updated versions of the Google Pixel watch, directly competing with Fitbit and Apple Watch in the wearable tech market.
A Google spokesperson stated, “Throughout the second half of 2023, several teams changed to enhance efficiency and align resources with their core product priorities. Ongoing organizational changes include some global role eliminations.”
The total number of job cuts remains undisclosed, leaving uncertainty about the current workforce in the affected departments.
This move comes against the backdrop of an economic slowdown in the United States and the European Union, impacting the profits and revenue of major IT and tech companies. The restructuring aligns with the industry trend, as companies like Microsoft and Google invest in generative artificial intelligence (AI) technology, inspired by the success of OpenAI’s ChatGPT.
Notably, reports from last year suggested that Google might cut nearly 30,000 jobs across all teams in 2024 as it plans to integrate generative AI capabilities into its virtual assistant. This shift towards AI is prompting internal restructuring, resulting in job cuts.
In January 2023, Alphabet, Google’s parent company, announced plans to cut 12,000 jobs, equivalent to 6% of its global workforce, marking the largest layoff in the company’s history. The ongoing changes underscore the tech industry’s dynamic nature as it navigates economic challenges and embraces transformative technologies.
