Tech

Google lays off hundreds of ‘Core’ employees, moves some positions to India and Mexico

What you need to know more about

  • The company's search boss, Prabhakar Raghavan, told employees at an all-hands meeting in March that Google plans to build teams closer to users in key markets, including India and Brazil, where labor is cheaper than in the U.
  • Just ahead of its blowout first-quarter earnings report on April 25, Google laid off at least 200 employees from its “Core” teams, in a reorganization that will include moving some roles to India and Mexico, CNBC has learned.

  • Google is laying off at least 200 employees from its “Core” organization, which includes key teams and engineering talent, CNBC has learned.
  • As part of the unit’s reorganization, the company will hire corresponding roles in Mexico and India.
  • “Announcements of this sort may leave many of you feeling uncertain or frustrated,” Asim Husain, vice president of Google Developer Ecosystem, wrote in an email to his team last week.

Just ahead of its blowout first-quarter earnings report on April 25, Google laid off at least 200 employees from its “Core” teams, in a reorganization that will include moving some roles to India and Mexico, CNBC has learned.

The Core unit is responsible for building the technical foundation behind the company’s flagship products and for protecting users’ online safety, according to Google’s website. Core teams include key technical units from information technology, its Python developer team, technical infrastructure, security foundation, app platforms, core developers, and various engineering roles.

At least 50 of the positions eliminated were in engineering at the company’s offices in Sunnyvale, California, filings show. Many Core teams will hire corresponding roles in Mexico and India, according to internal documents viewed by CNBC.

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Asim Husain, vice president of Google Developer Ecosystem, announced news of the layoffs to his team in an email last week. He also spoke at a town hall and told employees that this was the biggest planned reduction for his team this year, an internal document shows.

“We intend to maintain our current global footprint while also expanding in high-growth global workforce locations so that we can operate closer to our partners and developer communities,” Husain wrote in the email.

Alphabet has been slashing headcount since early last year, when the company announced plans to eliminate about 12,000 jobs, or 6% of its workforce, following a downturn in the online ad market. Even with digital advertising rebounding recently, Alphabet has continued downsizing, with layoffs across multiple organizations this year.

Chief Financial Officer Ruth Porat announced in mid-April that the company’s finance department would undergo restructuring, entailing layoffs and moving positions to Bangalore and Mexico City. The company’s search boss, Prabhakar Raghavan, told employees at an all-hands meeting in March that Google plans to build teams closer to users in key markets, including India and Brazil, where labor is cheaper than in the U.S.

The latest cuts come as the company enjoys its fastest growth rate since early 2022, alongside improving profit margins. Last week, Alphabet reported a 15% jump in first-quarter revenue from a year earlier and announced its first-ever dividend and a $70 billion buyback.  

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