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Google CEO Sundar Pichai said layoffs will not stop in 2024. (Photo: NDTV)

Google CEO warns employees of layoffs coming this year as the company continues to shift investment into areas like artificial intelligence (AI).

In a memo titled “Prioritizations for 2024 and Beyond” sent to Google employees on the afternoon of January 17, Mr. Pichai wrote: “We have ambitious goals and will invest in big priorities this year.” The leadership team is ready to share AI goals this week and will announce the results of the goals and key results for the year.

“The reality is that to make room for this investment, we have to make hard choices,” the Google chief continued. For some teams, that means eliminating positions, including “removing layers to simplify execution and accelerate speed.”

Pichai's latest message signals further cost-cutting measures at Google, following a series of layoffs since January 2023, when the company announced it would lay off 12,000 employees. Google also eliminated some perks like laptops and equipment.

Google is laying off hundreds of employees in areas like engineering, hardware, and advertising at the start of 2024. However, Pichai said the cuts won’t be as severe as last year and not all departments will be affected.

Shares of Google parent Alphabet are up 58% in 2023, in line with the broader tech trend, thanks in part to excitement around AI. Third-quarter revenue returned to double-digit growth, helped by a rebound in the digital advertising market.

Last month, Google released its most powerful AI model yet, Gemini. In some tests, Gemini even outperformed OpenAI’s GPT-4 model, the developer of the ChatGPT chatbot.

(According to CNBC)