Google Layoffs 2024: Latest GOOG Job Cuts - What You Need to Know

Google Assistant and hardware divisions like Pixel Phone and FitBit are losing employees. Layoffs are part of an industry trend.

Google Assistant, the voice interface created by Google, is facing a significant shakeup, with hundreds of employees seeking new job opportunities. This trend is not limited to the voice interface, as other hardware divisions such as the Pixel Phone and FitBit are also experiencing layoffs.

Despite having over 182,000 employees, the impact of these cuts may not be substantial in the grand scheme of things. The stock of Alphabet, Google's parent company, has seen a 1% increase over the last 24 hours, with GOOG opening at $144.57 and GOOGL at $143.34 this morning.

This downsizing is part of a larger industry trend, with major tech companies phasing out older technologies in favor of automated programming using generative AI.

For Google, this means streamlining operations such as Fitbit, a smartwatch company it acquired in 2021 for $2.1 billion. Co-founders James Park and Eric Friedman were among those affected by the layoffs. Additionally, Nest, a company Google purchased for $3.2 billion a decade ago, has also been impacted. The goal is to consolidate all hardware operations under a single functional team in order to achieve synergies similar to those seen at Apple.

The core engineering division is also experiencing layoffs, with the argument being that search is becoming increasingly automated, necessitating a shift towards building more skills for the AI era. This shift will result in the loss of features and entire products, such as the Google Podcast app, which is set to be discontinued in April.

Despite these changes, analysts remain optimistic about the company's stock, citing Google's dominance in search and its Google AdSense business as key factors contributing to a strong, self-sustaining profit base. The reorganization in response to the rise of AI is seen as a sensible move.

However, the savings from these layoffs may be short-lived, as Google and its competitors will likely engage in fierce competition to secure rare AI talent. As a result, the impact on the company's bottom line in the near term may be minimal.