Google claimed the dismissals will continue this year to meet the firm’s artificial intelligence goals. The exits are not slowing down the global technology company as it announced the United Kingdom investment the next day.
Google Developing $1B Data Center in UK
Recently, Google announced its intention to develop a $1B data center close to London as part of its expansion into the UK. The data center will reinforce the firm’s services, for instance, Maps, Google Cloud, YouTube, and Search. Additionally, the company noted that the new 33-acre location will create job opportunities for construction and on-site workers.
A Google blog post revealed that by the end of the decade, the data center will be developed to run carbon-free. The company noted it had begun its ambitious objective of operating all campuses and data centers on carbon-free energy, 24/7, by 2030.
Google Declares Dismissals Normal During Business Restructuring
A recent report by a digital media resource showed that Google lately sacked several workers at the start of this year, with intentions to continue dismissals all through the year.
Sunder Pichai, Google’s chief executive officer, noted that retrenchment was essential to enable the firm to develop the ‘ability’ to make further investments in priority technologies like artificial intelligence.
Last year, Google released more than 12000 employees after vowing to lessen its international labor force by 6%. According to Sundar, the firm anticipates dismissing fewer workers this year.
Google Trailing Microsoft Explosive Run
Over the past year, many analysts have established that Google seems to have fallen behind Microsoft, its main AI competitor. Despite Google’s excellent performance last year, Microsoft began this year by surpassing Apple as the globe’s most valuable firm. This is mainly because of the fame of artificial intelligence products developed in collaboration with OpenAI, ChatGPT’s developer.
Despite the current layoffs, the firm’s expansion might indicate an internal change. For a long time, the Mountain View company has called itself an ‘artificial intelligence-first’ firm. Nevertheless, some analysts claim the delayed position is self-imposed.
In a 2023 interview, Cyrus Mewawalla, GlobalData’s head of thematic intelligence, said that Google might have been reserved to introduce its generative artificial intelligence product to the market ahead of rivals like Microsoft. This is due to concerns that it could ‘dismantle’ Google Search’s ‘core business.’ Its present ambitious expansion strategy seems to show Google’s intention to move forcefully to make up ground.
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