When it comes to the jobs everyone wants in the tech field, Google (GOOGL) ranks high on most people’s wish lists.
When it was first founded in 1998 by Larry Page and Sergey Brin, Google was one of several search engines on the market, alongside Yahoo, Netscape, AltaVista, and many more.
💵💰Don’t miss the move: Subscribe to TheStreet’s free daily newsletter💰💵
But with time, Google pulled ahead of the pack, and by the time it bought YouTube in 1996, it was well on its way to becoming the tech behemoth it is today.
While it seems like a solid bet to work for such a wildly successful company, in the last few years, working for Google has been anything but.
Related: Google resolves major privacy issue
In 2023, Google revealed plans to lay off 12,000 employees in a massive cut, one that CEO Sundar Pichai called “a difficult decision to set us up for the future.”
“Over the past two years we’ve seen periods of dramatic growth. To match and fuel that growth, we hired for a different economic reality than the one we face today,” Pichai explained in the letter that accompanied the layoff.
Two more rounds came in 2024, and now, Google has announced it’s time for another.
Image source: Crabb/Digital First Media/East Bay Times via Getty Images
Google makes several key moves
On June 10, Google offered buyout deals to employees across many of its teams, including Communications, Marketing, Research, Core, and Knowledge & Information. The latter works on Search, Business Insider reported.
More Tech Stocks:
- Palantir gets great news from the Pentagon
- Analyst has blunt words on Trump’s iPhone tariff plans
- OpenAI teams up with legendary Apple exec
Senior Vice President of Core Systems Jen Fitzpatrick sent an internal memo on the deals, saying, “We’re offering a Voluntary Exit Program (VEP) for Core Googlers in the U.S. (in my reporting org).”
“We’ve seen positive feedback across the company in other orgs who have offered similar programs, and I wanted to extend the same option to eligible Core Googlers in the U.S. who would like to leave the company voluntarily with severance.”
Related: Google sends a harsh message to employees after layoffs
The memo goes on to say that the exit program may be a fit for Core Googlers “who aren’t feeling excited about and aligned with Core’s mission and goals, or those who are having difficulty meeting the demands of their role.”
The memo also addressed the company’s remote work policy, saying all Core Googlers in the U.S. within 50 miles of an office must return to a 3/2 hybrid schedule.
Google struggles as AI dominates search
When it comes to Google’s true reasons for this round of voluntary layoffs, it may have something to do with the fact that internet searchers are flocking en masse to ChatGPT to answer their questions instead of using Google Search.
ChatGPT has 400 million active users as of May, with OpenAI Sam Altman sharing via X last month that “ChatGPT daily active users have increased >4x over the last year.”
Per a recent Vox Media survey, 61% of Gen Z and 53% of Millennials opt to use AI tools to answer questions, rather than employing Google or other search engines.
There’s more than just AI to blame. People have been having a harder time as of late finding what they want in Google when they do use it. According to a survey of 1,000 people done by digital marketing firm Scorpion, 54% said they look through more search results than they did five years ago.
Take that frustration, and hand those same people an easy-to-read AI summary, and it’s easy to see why people would opt for that over combing through search results that don’t deliver what they want.
Related: Google quietly launches genius new app
