- Ruth Porat, Alphabet’s CFO announced that Google’s finance department is undergoing restructuring.
- This reflects its strategic shift towards prioritizing investments in artificial intelligence.
- Here is everything you need to know.
Departments impacted
Employees across several of Google’s teams in its real estate and finance departments have been affected, according to a Business Insider report.
The finance teams affected include Google’s:
- Treasury
- Business services
- Revenue cash operations
Restructuring
CFO Porat emphasized that the tech sector is experiencing a significant platform shift with AI. This presents an opportunity for Google to develop more helpful products and provide faster solutions to users.
However, tough decisions need to be made, including changes in work locations.
Restructuring involves:
- Layoffs
- Relocations
- Aligning resources to prioritize investments in artificial intelligence (AI).
Broader Workforce Rearrangement
This restructuring is part of a broader effort by Google to accommodate further investment in AI, especially as advertising growth slows.
CEO Sundar Pichai had hinted at more job cuts in January 2024 during a previous announcement to employees.
The restructuring will affect finance teams both domestically and abroad, including regions like the Asia-Pacific and Europe, the Middle East, and Africa.
Creation of Hubs
Porat told CNBC,
“Over the past year, we have talked about creating hubs of Fin’ooglers around the world that are vibrant and have a strong culture.
This strategy will help us be a more efficient organization and enables us to run 24 hours a day while respecting Fin’oogler’s worktimes,” said Porat, CFO of Alphabet.
(Fin’oogler is the term used by Google to describe the company’s employees working in finance.)
Google plans to create “hubs” for more centralized operations in cities like:
- Bangalore
- Mexico City
- Dublin
- Chicago
- Atlanta
Google aims to centralize its operations in key hubs around the world, despite the restructuring process. Additionally, the company plans to continue its presence in important locations such as the San Francisco Bay Area.
CFO’s Apology
Porat acknowledged the difficulty of these changes.
She expressed sadness at saying goodbye to talented teammates and friends affected by the restructuring.
Wrapping up
Google isn’t the only big tech company readjusting personnel in the age of AI… in time to come we will see more layoffs and restructuring!
As per BusinessNewsDaily about 31% of the 5,000 U.S. survey participants worry their employer plans to enact layoffs and budget cuts. The jobs that will be at risk include:
- Product management: 46%
- Quality assurance: 40%
- Marketing: 39%
- Finance: 37%
- Information technology (IT): 37%
