Google is set to fire employees all over again, despite the 12,000 workers who were laid off this year already. The reason? According to LiveMint, a report first published in The Information indicates that Google’s AI-powered ads have grown so self-sufficient that they no longer require as many individuals to oversee its functioning, making Google lay off employees who no longer have a necessary role at the company. This decision could affect the 30,000 employees of the ad sales unit who currently aid Google with its advertising interface. The threat of AI takeovers had begun to feel like one that would be more relevant only a few years from now but we are likely going to start seeing the consequences of AI as more and more companies begin to utilize it.
Google Ads tool – Google Performance Max – was launched in 2021 and was designed to simplify the process of targeted advertising for its users on multiple Google platforms. Also referred to as PMax, the service uses machine learning models to drive conversions on Google channels like YouTube, Display, Search, Discover, Gmail, and Maps, using its Smart Bidding tool. Based on your target, Google Performance Max now generates AI-powered ads and assets in addition to helping you reach your advertising goals. The addition of these very AI-powered ads is likely what has pushed the company’s advertising success further, leading Google to fire employees and scale back on its workforce.
The AI ad tool has seen increasing adoption since it was revealed at the 2023 Google I/O event and as a result, advertisers have an easier time controlling their assets on their own rather than having to turn to the ad sales employees, who were previously assisting in simplifying the task for them. With no responsibilities and duties remaining, these employees will be let go as a part of Google’s restructuring efforts according to Sean Downey, President of Americas & Global Partners at Google, who reportedly disclosed these details to employees in an internal meeting.
CEO Sundar Pichai had reportedly stated that Google’s layoff of employees, 12,000 of them to be precise, was one of the “most difficult decisions for the company” but that does not seem to have dissuaded the company from resorting to firing employees again. If the decision to lay off employees who were made redundant by the AI-powered ads goes through, the 30,000-strong ad sales unit team that will be affected will leave an even bigger mark on the employee morale than the last time. After Microsoft, Amazon, Google, Hasbro, and other big names laid off employees this year, one could have hoped that we’d be seeing the end of job cuts by now, but overall, businesses do not seem to be slowing down with their internal changes.
Clean energy company Palmetto has also been caught up with layoff since September but the number of employees who lost their jobs is currently unknown. Intel will also lay off employees in the U.S. over the next two weeks. 235 employees will likely be affected and while the numbers sound small, the impact on those lives will most certainly hit hard. U.S sportswear brand Nike is also looking at a $2 billion cost-cutting and inevitably, this will also lead to slicing the excess manpower they are able to identify at the company. It has been a tough year for everyone, regardless of industry and so far, it seems the trend will continue into 2024.
What sets the news of Google firing employees apart is the reason behind the news, essentially the Google AI job takeover that we’re witnessing today.
While most other industries have been focused on cost-cutting and reorganization of resources, the jobs appear to be drying out quicker than ever before and with AI doing the rest of the work as well, it is understandably tiring for everyone right now. With the Google layoffs of employees still not fully confirmed, it would be ideal if the company finds a way to turn things around and guarantee work for its employees but reports do not appear hopeful for now.