Google employees worried about possible layoffs in January

In recent years, Google has been under regulatory pressure across multiple business segments. Antitrust agencies have had its app store, ad tech, and web browsing businesses under scrutiny. The company has already faced unfavorable rulings and is currently awaiting definitive action on some of them. Amid this situation, a report suggests possible layoffs by Google in January 2025.

Possible layoffs of “low performer” Google employees in January, posts suggest

Certain posts on Team Blind, an anonymous employee forum, sparked the concerns among Google employees. …s claimed that Google plans to increase layoffs of “lower buckets”—that is, low-performing employees. The company has reportedly seen an 8% to 10% increase in this group of workers in its workforce and would opt to lay them off. …s state that Google will begin the layoff process in January 2025.

It’s noteworthy that none of the claims are backed by evidence, so you can take them with a grain of salt. However, the mere possibility that ...s are true has caused concern among employees.

Regulatory and antitrust situations have impacted the company’s stock performance

One of the factors that could influence possible layoffs at Google is its inability to match the stock market performance of other big tech companies in 2024. The regulatory pressure and antitrust cases that the firm has been facing have had a lot to do with this.

At present, the Mountain View giant is still waiting to hear from judges whether it will have to sell Chrome. Under this uncertainty, investors think twice before putting their money in. Google already had rounds of layoffs in 2023, letting go of about 12,000 employees. This amounted to approximately 6% of its workforce, and the company faced backlash as a result. The Alphabet Workers Union asserted at the time that many employees were unaware of the reasons for their dismissal.

Additionally, Brian Ong—Google’s vice president of recruiting—said that the company was “hiring less than we did a couple of years ago.”

Google’s profit strategy relies on AI

During Alphabet’s late third-quarter earnings call, Anat Ashkenazi—Alphabet’s CFO—said that they wanted to make changes to the company’s cost base. This does not necessarily imply that Google will implement rounds of layoffs, but those who are more concerned may interpret it as such after reading ...s suggesting it.

Ashkenazi also revealed the company’s strategy regarding profits. It seems that there won’t be any major revolutions, or so her words suggest. Alphabet will “build on” previous efforts to streamline “operations across the company through the use of AI.” That means that the firm will maintain its focus on AI and will try to get the most out of its current developments. The bet on the AI segment is a long-term—and billion-dollar—investment.

Google employees react to possible layoffs

Employees from Google and other companies reacted to ...s on Team Blind. Team Blind is a board that allows employees to express their opinions and concerns anonymously, although they can verify who they work for. A Google employee says the firm’s output has increased to “an average of 500 code changes a year.” This would make it easier to list employees as “underperforming.”

A Google Cloud team member said the division’s layoff rate is 6%. Meanwhile, employees at Amazon and Capital One said the layoff rate at their jobs ranges from 6% to 15%. Some Google workers also believe that being a “low performer” alone is not adequate grounds for dismissal.

Google isn’t the only tech company to be embroiled in potential layoffs lately. In October, TikTok laid off hundreds of employees, while there are rumors that Tidal will say goodbye to a quarter of its staff.