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

The global technology community is once again in turmoil over the news that Google has decided to "take action" against about 200 employees in its global business division.

The move, which took place on May 6, first reported by The Information and later confirmed by Google to Reuters, is not only a telling figure but also a strong signal of a deep strategic shift taking place within the search giant. It is not the first time this year that Google has cut staff. Previously, the Platforms and Devices division, which produces Android, Pixel and Chrome, also underwent a similar streamlining.

Google's official announcement emphasized that these changes are intended to "enhance collaboration and improve the ability to serve customers more quickly and efficiently." However, looking at the big picture, this is clearly a strategic move to reallocate resources, focusing all efforts on the two hottest "fronts" today: artificial intelligence (AI) and super data centers.

Silicon Valley's familiar loop: Cut to reinvest

The fact that tech giants are laying off employees in mature or unsuitable business segments to invest in emerging technologies is not a new story in Silicon Valley. This has almost become a familiar "formula", a necessary "transformation" cycle to maintain growth momentum and competitiveness.

Looking back, 2016 saw large-scale layoffs at Intel (12,000 jobs), IBM (more than 5,000), and Cisco (5,500), with the goal of redirecting capital and talent to promising areas like the Internet of Things (IoT) and cloud computing—technologies that have defined the past decade.

The current cycle bears similarities, but with a new star in the form of AI. Facebook’s parent company, Meta, has let go of about 5% of its workforce (3,600 people). Microsoft has also cut less than 1%. What these decisions have in common is that they are aimed at departments that do not directly support the AI ​​development strategy.

For Google alone, its commitment to invest up to $75 billion in AI infrastructure and data centers is a powerful demonstration that the goal is not just about cost savings, but a large-scale reallocation of resources.

This strategy reflects the "destruction to create" model - cutting old branches to nurture future technology buds, a formula that has helped Silicon Valley continuously break through and lead the world for decades.

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

New Era of Layoffs: No More "Equalization", Performance Speaks

What is noteworthy about this wave of layoffs is not only the reason for restructuring, but also the way it is implemented. Google's statement about "increasing cooperation" and optimizing efficiency seems to reveal a new trend in human resource management culture at technology corporations, which is to cut based on individual performance evaluations and suitability with strategic goals, instead of the confusing "massive beheading" style of the past.

A clear example of this trend is Meta’s 2025 layoffs, which focused on the 5% of employees who were rated as having the lowest performance. Similarly, Microsoft also relies on performance reviews to make its final decisions about personnel. This approach is more nuanced, aimed at building a lean, efficient team that is truly aligned with its ambitious AI goals.

This is a stark contrast to past waves of layoffs. In 2016, for example, HP eliminated as many as 3,000 positions and Intel cut 11% of its workforce in a major restructuring effort. Such “massive” cuts often cause widespread insecurity and can negatively impact the morale of those who remain.

The shift to performance- and suitability-based dismissals not only reduces confusion in the labor market, but also sends an implicit message to all employees: there is no longer a concept of “untouchability”, even when the company is “doing well”. Performance, adaptability and contribution to new strategic goals are key to securing a position in a competitive and constantly changing environment.

AI reshapes the tech industry and the labor market

While tech companies have compelling reasons for restructuring, there’s no denying that the wave of layoffs is creating unseen stress and uncertainty for thousands of workers. In the first quarter alone, the global tech industry saw more than 22,000 job cuts. In February alone, that number reached 16,084, showing how widespread and aggressive this “continuous optimization” trend is.

For those directly affected, this is a huge shock, requiring them to quickly seek new opportunities, even change careers. For those who stay, the pressure to prove their worth and the worry about job stability are not small. The AI ​​era requires new skills, new thinking. Continuous learning, updating knowledge and being ready to adapt become vital requirements.

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

Google’s decisions, like those of Meta and Microsoft, are not isolated events. They are important pieces in the larger puzzle of the dramatic rise of AI and its far-reaching implications for the entire tech industry and the labor market.

AI is no longer a science fiction concept. It is here and permeating every aspect of our lives, from the way we work, play, to the way businesses operate. To fully exploit the potential of AI, companies need massive data centers with super-computing capabilities, and most importantly, a team of highly skilled people in AI, machine learning, and data science.

This shift will inevitably create new “winners and losers” in the labor market. Those with skills that fit the AI ​​era will be sought after and rewarded handsomely. Conversely, jobs that can be automated or no longer fit the new direction will face the risk of being cut.

The shake-up at Google and other tech giants is a stark reminder of how quickly the world of technology is changing. The restructuring, while painful in the short term, may be necessary for companies to adapt and seize the new opportunities presented by AI.

However, it is important that this process is carried out responsibly, balancing business goals with the human factor. For employees, this is a time to review their skills, proactively learn and equip themselves with new knowledge so as not to be left behind in the technological revolution that is taking place every day, every hour. Silicon Valley’s AI gamble has begun, and this game promises to have many more surprises and dramas ahead.

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