Google Initiates Massive Workforce Reductions, Terminates Fitbit Co-Founders

Google has initiated substantial layoffs spanning various departments, resulting in the termination of Fitbit co-founders James Park and Eric Friedman. The Alphabet-owned tech giant announced on Wednesday that it is implementing widespread job cuts, impacting numerous sectors, including engineering and hardware. According to Reuters, the company is taking this drastic measure as part of its cost-cutting strategy.

The layoffs extend across diverse teams, with the Voice Assistant and hardware units for Pixel, Nest, and Fitbit experiencing the most significant impact. Google clarified in a statement that the layoffs would affect hundreds of employees in hardware and engineering, with a substantial number coming from the augmented reality (AR) team. Additionally, the central engineering team responsible for the company's search operations will also witness significant role eliminations.

While Google acquired Fitbit for $2.1 billion in 2021, it has continued to release updated versions of the Google Pixel watch, intensifying competition with Fitbit and Apple Watch.

A spokesperson for Google provided insight into the company's rationale, stating, "Throughout the second half of 2023, several of our teams underwent changes to enhance efficiency and alignment with their major product priorities. Some teams are still undergoing organizational changes, which include global role eliminations."

The total number of job cuts remains undisclosed, leaving uncertainty about the extent of the impact on the Voice Assistant and hardware departments.

Industry-Wide Job Cuts Amid Economic Slowdown

The economic downturn in the United States and the European Union has significantly affected the profits and revenue of major IT and tech companies over the past year. This reorganization of teams coincides with a period where tech giants like Microsoft and Google are investing heavily in the growing adoption of generative artificial intelligence (AI) technology, following the success of OpenAI's ChatGPT.

A report by The Information last year suggested that Google might be planning to lay off nearly 30,000 employees across all teams in 2024 as it integrates generative AI capabilities into its virtual assistant. The increasing reliance on AI is causing internal restructuring, resulting in widespread job cuts, according to the report.

In January 2023, Alphabet, Google's parent company, announced its intention to cut 12,000 jobs, equivalent to 6% of its global workforce, marking the largest layoff in the company's history. The ongoing changes reflect the evolving landscape of the tech industry as companies adapt to emerging technologies and economic challenges.