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 yr as the corporate continues to shift investments towards areas like synthetic intelligence.
In a memo titled “2024 priorities and the yr forward” that staffers obtained Wednesday night, Pichai stated, “we now have formidable targets and might be investing in our huge priorities this yr.” Within the memo, which was obtained by CNBC, Pichai stated firm management is gearing as much as share its AI targets for the yr this week and can publish its 2024 OKRs (aims and key outcomes).
“The fact is that to create the capability for this funding, we now have to make robust decisions,” Pichai wrote. For some groups which means eliminating roles, which incorporates “eradicating 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 value 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 in the reduction of on some perks in addition to laptops and tools.
Because the calendar turned, Google has reduce 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 groups will proceed to make useful resource allocation choices.” He stated layoffs gained’t be on the scale of final yr’s reductions and “won’t contact each crew.”
Shares of Google father or mother Alphabet jumped 55% final yr as tech shares rallied following a brutal 2022, pushed partly by pleasure about AI. Income within the third quarter returned to double-digit progress alongside a rebound within the digital advert market.
Final month, Google launched its largest and most succesful AI mannequin, Gemini. In some checks, the mannequin’s efficiency incrementally surpassed the GPT-4 mannequin from OpenAI, creator of ChatGPT.
WATCH: Google to chop tons of of jobs as huge tech layoffs proceed
