The Mountain View giant seeks to expand its presence in markets with lower wages than the United States
Google has been laying off employees for more than a year. The personnel cuts have materialized in batches since January 2023 when the company announced the termination of 12,000 employees. The most recent movement has left some 200 people of the Core Systems & Experiences team, but it is expected that some of these positions will be filled soon in other countries.
The information comes from CNBC, which indicates that the search giant will hire talent in Mexico and India, where salaries in the technology sector are lower than in the United States. According to documents seen by the aforementioned American network, at least 50 of the affected technical roles in this important division were located in the offices of Sunnyvale, California.
Google continues to reorganize its teams
An internal email sent by Asim Husain, head of Google’s Developer Ecosystem, notes that the recent layoffs correspond to the largest planned cut this year. The executive, however, did not refer to the cost reduction operational, but justified the move in the goal of expanding to “high-growth workforce locations.”
For Husain it is important that Google maintains a global presence, but at the same time it must be closer to other markets. It should be noted that this is not the first time that the company has made this type of decision. In April, for example, CFO Ruth Porat announced a restructuring of her department, a change that included layoffs and job moves to Bengaluru and Mexico City.
In this way, Google joins the trend of companies that hire personnel in South Asia and Latin America to reduce operating costs. As Reuters reports, some foreign technology companies are even hiring people in smaller citiesa reality that is possible thanks to the virtues of remote work, where it is no longer necessary to attend an office in person.
A report developed by YouTeam indicates that India is the leading country in offshore software development in Asia. The country is also at the top of the 2023 Global Innovation Index. They also explain that in Latin America, Mexico stands out for two important reasons: its proximity to the United States and the ability of employees to understand American business culture.
Returning to the news at Google, the team that is transforming is nothing less than the one in charge of laying the technical foundations behind the flagship products of the company, protect the online security of users and work on the global infrastructure. This is a group of workers whose main domain is in the Python language.
The changes occur in a context where the Google empire has been threatened by growing advances in the world of artificial intelligence. The company itself recognizes that it has grown so much that it has lost agility, which is why it has been combining some of its internal teams. As if this were not enough, there are rumors that OpenAI is preparing its own search engine.
Images | Alex Dudar | Solen Feyissa
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