Google’s parent Alphabet Inc (GOOGL.O) is cutting about 12,000 jobs, or 6% of its workforce, it said in a staff memo Friday, as the technology sector reels from layoffs and companies stake their futures on artificial intelligence (AI).
Alphabet’s shares were up nearly 4% in morning trade.
The cuts come at a delicate moment for the U.S. company, which has long been the leader in key areas of AI research.
Alphabet now faces a challenge from Microsoft Corp (MSFT.O) in a branch of tech that can, for instance, create virtually any content a user thinks up and types in a text box.
Industry observers said so-called generative AI may test Google’s dominance in internet search after a Microsoft-backed startup, OpenAI, released a chatbot known as ChatGPT that can answer queries with human-like responses.
Microsoft this week said recession worries were forcing it, too, to shed 10,000 jobs, less than 5% of its workforce, but it would focus on imbuing its products with more AI going forward.
Alphabet’s CEO Sundar Pichai echoed the sentiment in his layoff memo.
Source: Reuters
© CopyRights RawNews1st
