Just before announcing its first-quarter earnings on April 25, Google laid off at least 200 employees from its core teams as part of a restructuring initiative aimed at relocating positions to India and Mexico.

According to CNBC, the layoffs primarily affected the backbone of the company, specifically teams responsible for the technical development of leading products and ensuring online security for users. These include information technology, Python, technical infrastructure, security, applications, and other technical groups.

Google Developer Ecosystem Vice President Asim Hussein announced these layoffs in an email to his team, noting that these were the largest cuts this year. His message highlighted the company's expansion into high-growth international locations to better connect with partners and developer communities.

Since early last year, Alphabet has reduced its workforce, announcing plans to eliminate about 12,000 jobs, or 6% of its workforce, following a downturn in the online advertising market. Even with a recent recovery in digital advertising, Alphabet has continued to downsize, with layoffs across various organizations this year.

Chief Financial Officer Ruth Porat announced in mid-April that the finance department would undergo restructuring, resulting in further layoffs and job relocations to Bangalore, India, and Mexico City. Google plans to create teams closer to users in key markets, including India and Brazil, where labor costs are lower than in the U.S.

Interestingly, these cuts occur as the company enjoys its fastest growth rate since early 2022, alongside improving profit margins. Last week, Alphabet reported a 15% jump in first-quarter revenue compared to the previous year and announced its first dividend and a $70 billion stock buyback.

Evan Kotsopoulos, Google’s Vice President of Governance and Data Protection, addressed these changes last week, expressing the company's strategy to respond to "escalating regulatory focus" and move faster. Prabhakar Raghavan, Google's Senior Vice President overseeing search, referred to increased competition, a more demanding regulatory environment, and slower organic growth as the "new operational reality" for the company.

Google confirmed the restructuring and layoffs within the Core unit, noting that affected employees could apply for open roles within Google and would have access to outplacement services. A company spokesperson emphasized the investment in major product priorities and opportunities.