The Blubber

Just before releasing its impressive first-quarter earnings report on April 25, Google implemented layoffs affecting at least 200 employees from its “Core” teams, as part of a reorganization that includes relocating some roles to India and Mexico, according to CNBC.

The Core unit is responsible for constructing the technical framework for the company’s flagship products and ensuring users’ online safety, as described on Google’s website. This unit encompasses essential technical divisions such as information technology, the Python developer team, technical infrastructure, security foundation, app platforms, core developers, and various engineering roles.

Documents show that at least 50 of the eliminated positions were in engineering at the company's Sunnyvale, California offices. Many of these roles will be replicated in Mexico and India, based on internal documents seen by CNBC.

In an email to his team last week, Asim Husain, vice president of Google Developer Ecosystem, announced the layoffs. He also mentioned at a town hall that this was the largest planned reduction for his team this year, according to an internal document.

Husain wrote in the email, “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.”

Alphabet, Google’s parent company, has been reducing its workforce since early last year when it announced plans to cut about 12,000 jobs, equivalent to 6% of its workforce, following a downturn in the online advertising market. Despite recent growth in digital advertising, Alphabet has continued downsizing, with layoffs occurring across multiple departments this year.

In mid-April, Chief Financial Officer Ruth Porat announced a restructuring of the finance department, involving layoffs and the relocation of positions to Bangalore and Mexico City. At an all-hands meeting in March, Google's search boss, Prabhakar Raghavan, informed employees that the company plans to establish teams closer to users in key markets like India and Brazil, where labor costs are lower than in the U.S.

These latest layoffs come at a time when the company is experiencing its fastest growth rate since early 2022, alongside improving profit margins. Last week, Alphabet reported a 15% increase in first-quarter revenue from a year earlier and announced its first-ever dividend and a $70 billion buyback.