AI takes the throne: Google "cuts" staff, layoff storm sweeps the world

(Dan Tri) - The AI ​​fever is causing tech giants like Google to aggressively "renew" their staff, opening the way for a wave of large-scale layoffs and raising questions about the future of tech workers.

The global tech community is once again in turmoil following news that Google has decided to lay off approximately 200 employees in its global business division.

The move, which took place on May 6th and was first reported by The Information, and later confirmed by Google to Reuters, is not just a significant number but a strong signal of a profound strategic shift underway within the search giant. This isn't the first time this year Google has cut staff. Previously, the platforms and devices division, which gave birth to Android, Pixel, and Chrome, also underwent a similar downsizing.

Google's official statement emphasizes that these changes are aimed at "enhancing collaboration and improving the ability to serve customers more quickly and efficiently." However, looking at the bigger picture, this is clearly a strategic move to reallocate resources, focusing all efforts on the two hottest fronts today: artificial intelligence (AI) and megadata centers.

The familiar Silicon Valley cycle: Cut costs to reinvest.

The practice of tech giants laying off employees in mature or outdated business areas to invest in emerging technologies is nothing new in Silicon Valley. It has almost become a familiar "formula," a necessary "transformation" cycle to maintain growth and competitiveness.

Looking back, in 2016 we witnessed large-scale layoffs at Intel (12,000 jobs), IBM (over 5,000), and Cisco (5,500). Their goal at the time was to redirect capital and human resources to promising areas such as the Internet of Things (IoT) and cloud computing – technologies that have shaped the past decade.

The current cycle shares similar characteristics, but with a new "star": AI. Meta, Facebook's parent company, has laid off approximately 5% of its workforce (equivalent to 3,600 people). Microsoft has also implemented cuts of less than 1%. The common thread in these decisions is that they all target departments not directly involved in AI development strategies.

For Google specifically, the commitment to invest up to $75 billion in AI infrastructure and data centers is a powerful testament to the fact that the goal goes beyond simply saving costs; it's a large-scale reallocation of resources.

This strategy reflects the "destruction to create" model – pruning old branches to nurture future technological sprouts, a formula that has helped Silicon Valley consistently break through and lead the world for decades.

Google has just laid off 200 employees to "make way" for AI and data centers (Photo: Reuters).

The new era of dismissals: No more "one-size-fits-all" approach, performance speaks for itself.

What's noteworthy about this wave of layoffs is not just the restructuring reasons, but also the way they're being implemented. Google's statements about "enhancing collaboration" and optimizing efficiency seem to reveal a new trend in human resource management culture at tech corporations: cuts based on individual performance reviews and alignment with strategic goals, rather than the chaotic mass dismissals of the past.

A clear example of this trend is Meta's downsizing in 2025. The company focused on the bottom 5% of employees who were rated as underperforming. Similarly, Microsoft also relies on performance reviews to make final personnel decisions. This approach is more nuanced, aiming to build a lean, efficient team that truly aligns with ambitious AI goals.

This contrasts sharply with past waves of layoffs. For example, in 2016, HP eliminated as many as 3,000 positions and Intel cut up to 11% of its total workforce in a major restructuring effort. Such sweeping cuts often create widespread anxiety and can negatively impact the morale of those who remain.

The shift to performance- and fit-based layoffs not only alleviates confusion in the labor market but also sends a subtle message to all employees: the concept of "invincibility" no longer exists, even when the company is thriving. Performance, adaptability, and contributions to new strategic goals are key factors in securing a position in a competitive and ever-changing environment.

AI is reshaping the technology industry and the labor market.

While tech companies offer compelling justifications for restructuring, it's undeniable that the continuous layoffs are creating invisible pressure and an uncertain future for thousands of workers. In the first quarter alone, the global tech industry saw over 22,000 jobs cut. In February, that number reached 16,084, demonstrating the widespread and aggressive nature of this "continuous downsizing" trend.

For employees directly affected, this is a major shock, requiring them to quickly seek new opportunities, even changing careers. For those who remain, the pressure to prove their worth and the worry about job stability are also significant. The AI ​​era demands new skills and new ways of thinking. Continuous learning, updating knowledge, and being ready to adapt become vital requirements for survival.

In the first quarter of 2025, global technology companies cut more than 22,000 jobs (Illustration: Shutterstock).

Google's decision, as well as those of Meta and Microsoft, are not isolated events. They are crucial pieces of the larger picture of the powerful rise of AI and its far-reaching impact on the entire technology industry and the labor market.

AI is no longer science fiction. It's a reality, permeating every aspect of life, from how we work and play to how businesses operate. To fully exploit the potential of AI, companies need massive data centers with super-powerful computing capabilities, and, most importantly, a highly skilled workforce specializing in AI, machine learning, and data science.

This shift will undoubtedly create new "winners and losers" in the labor market. Those with skills suited to the AI ​​era will be in high demand with attractive compensation packages. Conversely, jobs that may be automated or are no longer relevant to the new direction will face the risk of layoffs.

The personnel overhaul at Google and other tech giants serves as a stark reminder of the dizzying pace of change in the tech world. Restructuring, however painful in the short term, may be a necessary step for businesses to adapt and seize the new opportunities offered by AI.

However, it is crucial that this process be carried out responsibly, balancing business goals with human resources. For employees, this is a time to reassess their skills, proactively learn, and acquire new knowledge to avoid being left behind in the ongoing technological revolution. Silicon Valley's AI gamble has begun, and this game promises many surprises and dramatic twists ahead.

Source: https://dantri.com.vn/kinh-doanh/ai-len-ngoi-google-tram-nhan-su-bao-sa-thai-can-quet-toan-cau-20250508124202204.htm