Google Lays Off Hundreds in Platforms and Devices Unit Amid Strategic Shift Toward AI

Alphabet Inc.'s Google (NASDAQ: GOOGL) has reportedly laid off hundreds of employees within its Platforms and Devices division, according to a report by The Information on Friday, citing a source with direct knowledge of the matter.

The affected unit includes some of Google's most well-known products such as the Android operating system, Pixel smartphones, and the Chrome browser. The latest job cuts follow a voluntary exit program offered to employees in January as part of a broader organizational restructuring.

“Since combining the platforms and devices teams last year, we’ve focused on becoming more nimble and operating more effectively. This included making some job reductions in addition to the voluntary exit program that we offered in January,” a Google spokesperson told The Information. The tech giant has not yet responded to further inquiries from Reuters.

The move reflects a growing trend among Big Tech companies to reallocate resources away from traditional product lines and toward AI development and data center infrastructure—areas seen as crucial for future growth.

Other major players have followed similar paths:

• Meta Platforms Inc. (META.O) cut around 5% of its "lowest performers" earlier this year while accelerating its recruitment of machine learning engineers.

• Microsoft Corp. (MSFT.O) eliminated 650 jobs in its Xbox gaming division in September.

• Amazon.com Inc. (AMZN.O) carried out layoffs across multiple units, including its communications department.

• Apple Inc. (AAPL.O) reportedly axed around 100 roles in its digital services group last year.

• In February, Google’s cloud division was also hit with layoffs, though the impact was limited to a few teams, according to Bloomberg.

This latest development comes after Google’s parent company Alphabet announced in January 2023 its intention to slash 12,000 jobs, or approximately 6% of its global workforce, as part of a company-wide cost-cutting initiative.

As artificial intelligence reshapes the tech landscape, companies are being forced to make tough decisions about where to invest and where to scale back—leaving traditional product divisions increasingly vulnerable.