Google announces additional layoffs of 1,000 people
The largest asset management company also “reduced 600 employees”
Macy’s Department Store “will reduce jobs by 2,350”
“>A view of Macy’s department store in the U.S., which announced a large-scale restructuring plan this year. New York =
“There will be more workforce reductions than this one within this year.”
Google’s CEO Sundar Pichai, who has laid off about 1,000 employees since the beginning of the year, predicted that there will be a much more intense restructuring this year. In a recent memo he sent to executives and employees, he warned that “job cuts will continue.”
This isn’t just a Google phenomenon. Recently, in the United States, there has been a strong wind of restructuring across all industries, including finance, distribution, and media. Locally, it is pointed out that poor performance has become more serious as high interest rates continue, and predictions that artificial intelligence (AI) will replace industrial manpower are already becoming a reality.
The memo sent by CEO Pichai contains an important message suggesting human resource reorganization due to AI. The Verge, a U.S. information technology (IT) media outlet, reported, “There is a phrase in the memo that difficult choices are inevitable in order to secure the capacity to invest in ‘more important priorities.’”
Here, ‘more important priority’ refers to AI. In fact, Google has recently introduced an AI automation system and is reducing a significant number of positions in advertising and other related areas. CEO Pichai, who also cut 12,000 jobs last year, added, “The intention is to reduce the number of positions and simplify the organizational structure to increase execution ability and speed.”
Amazon also announced job cuts in its Prime Video division this year to secure AI investment. Forbes magazine reported, “As of the new year, 58 companies have already laid off about 7,800 people.” BlackRock, the world’s largest asset management company, also announced a reduction of about 600 employees, saying, “We are responding to technological changes in the financial industry.” According to CNN, CEO Larry Fink said in a memo to internal executives and employees, “The industry is changing faster than at any time since the company was founded,” and “a complete readjustment is necessary.”
It is expected that job cuts due to investment in the AI field or the substitution effect of AI will continue to increase. As a result of a survey of global CEOs conducted by global consulting firm PwC ahead of the World Economic Forum, approximately 25% responded, “We plan to reduce our workforce by at least 5% due to the introduction of generative AI this year.”
In contrast, for media and distribution companies, prolonged high interest rates and changes in the advertising market are known to be the main causes of restructuring.
Sports Illustrated (SI), a global sports magazine, caused shock by announcing in a statement on the 19th, “We plan to lay off ‘most’ executives and employees.” It has been reported that SI has recently suffered from serious financial difficulties to the extent that it has been unable to pay brand licensing fees. As the staff continued to be reduced, the quality of some of the articles last year deteriorated, leading to speculation that they were written by AI.
Source: Donga
Mark Jones is a world traveler and journalist for News Rebeat. With a curious mind and a love of adventure, Mark brings a unique perspective to the latest global events and provides in-depth and thought-provoking coverage of the world at large.