June 13, 2024
Investment

Google CEO Warns AI Investment Will Mean More Job Cuts: Report.


Google-parent Alphabet is set to cut more jobs in order to make space for investment in artificial intelligence.

Alphabet CEO Sundar Pichai said some teams would need to eliminate roles in order to “create the capacity” for investment in promising areas such as artificial-intelligence, CNBC reported, citing an internal memo.

That could be…

Google-parent

Alphabet

is set to cut more jobs in order to make space for investment in artificial intelligence.

Alphabet

CEO Sundar Pichai said some teams would need to eliminate roles in order to “create the capacity” for investment in promising areas such as artificial-intelligence, CNBC reported, citing an internal memo.

That could be painful news for Alphabet workers after the company said last week that it was laying off hundreds of employees in multiple teams including those working on Google’s Assistant program, hardware, and internal software tools.

AI has emerged as the priority area for investment for Google over fears its core search business is more exposed to competition than it has been in years. Rivals like

Microsoft

and start-ups such as Perplexity are seeking to attract users to their own AI-enabled search platforms.

However, the layoffs aren’t expected to be on the same scale as last year when Alphabet said it would cut 12,000 positions amid large-scale job losses across the technology industry.

Advertisement – Scroll to Continue


Alphabet didn’t immediately respond to a request for comment from Barron’s early on Thursday.

Alphabet shares were up 0.9% in premarket trading on Thursday. Peers

Microsoft

and

Amazon.com

were up 0.8% and 1.1%, respectively.

Write to Adam Clark at adam.clark@barrons.com



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent. View more
Accept
Decline