Google to lay off 16% of its workforce as it ends AI divisions

Google plans to lay off thousands of employees as it winds down two AI divisions.<br><br>The layoffs are the latest in a wave of job cuts sweeping the tech industry, particularly in AI-focused units.<br><br>Google said it would eliminate 16% of its global workforce. The company employed around 175,000 people worldwide at the end of September.<br><br>Alphabet CEO Sundar Pichai said it decided to end Everyday Robots and Makani, two divisions set up in 2019 to develop AI for physical tasks.<br><br>The company said it had already started the process of laying off around 27,000 employees. It has also closed its Everyday Robots division and plans to close Makani by July.<br><br>Employees in regions where Google has a physical office will be provided with 20 weeks of severance pay, along with career transition support.<br><br>Laid-off US third-party contractors will be given 17 weeks of severance pay and career transition support.<br><br>Shares in Alphabet, Google’s parent company, jumped more than 7% in New York following the announcement.<br><br>In a memo to employees, Pichai said the company was already ahead of its timeline set in January to shed around 6% of its workforce.<br><br>Shares in Alphabet jumped following the layoffs announcement<br><br>Rather than physically allocating extra resources, the company is allocating more of its computing power to its AI work and retaining critical engineering talent.<br><br>The company also said it would retain particular developments from Everyday Robots and Makani, such as AI third-party developers, including those for robots that work in warehouses.<br><br>Google to lay off 16% of its workforce as it ends AI divisions (bbc.co.uk)<br><br>EDIT: Let's please keep the discussion civil.