Google Layoffs 2024: What to Know About the Latest Google Job Cuts Today

Even in the face of job cuts, Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) stock is rising today. The Google parent company is in full focus after announcing plans to reduce its workforce for the second time this year. Details are still emerging regarding this next round of Google layoffs, although the company indicated that some jobs may move to its offices overseas.

Back in January, Google eliminated roughly 1,000 jobs in its hardware and search division. These cuts were intended to help the company shift gears and expand its artificial intelligence (AI) advancements. Now with GOOGL stock reacting well to news of more layoffs, the market seems to like the latest restructuring decision.

The Google Layoffs: A Closer Look

Few details about the Google layoffs have been provided so far, so it’s difficult to speculate just how much these cuts will impact share prices. Still, since the previous round of job cuts this year, GOOGL stock has remained mostly in the green. Today’s performance suggests that this trend will continue as Google shifts away from older operations.

What do we know about the upcoming Google layoffs? Business Insider reports that, according to unnamed sources, the company’s finance and real estate teams are being impacted by the reductions. However, the outlet notes that the number of eliminated jobs remains unconfirmed. A Google spokesperson issued the following statement:

“To best position us for these opportunities, throughout the second half of 2023 and into 2024, a number of our teams made changes to become more efficient and work better, remove layers and align their resources to their biggest product priorities. Through this, we’re simplifying our structures to give employees more opportunity to work on our most innovative and important advances and our biggest company priorities, while reducing bureaucracy and layers.”

That said, the spokesperson added that Google will relocate some jobs to locations outside the U.S., such as Ireland and India. Employees impacted by the Google layoffs will also have the opportunity to apply for other jobs within the company. That’s likely part of why GOOGL stock is still rising as news of the layoffs trends.

Why It Matters

When a troubled company announces job cuts, it’s often a sign of distress that has investors running for the exits. But when a strong company like Google reduces its workforce, it’s usually in the name of restructuring. These measures typically benefit the company, and that definitely seems to be what’s happening here, with investor confidence in Google’s plans for the future remaining high.

With details still being released, it’s hard to know exactly what the firm is planning. But as news of the Google layoffs hasn’t harmed share prices, it’s likely that specific numbers won’t make much of a difference. What’s more, if the company shifts even more resources to its fast-growing AI division, investors could see further growth over the coming months.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.