Google Faces Rumors of 30,000 Layoffs... Will AI-Driven Job Cuts Become a Reality?

Promotion of Organizational Restructuring in Advertising Sales Division
Reducing Staff Demand by Utilizing AI in Advertising

Google, rapidly catching up to OpenAI in the generative artificial intelligence (AI) market, is initiating a reorganization targeting 30,000 employees. As Google, leading the AI boom, is reported to be automating some tasks using AI and preparing for large-scale restructuring, concerns are growing that AI-driven layoffs may become a reality.

On the 25th (local time), according to foreign media including The Information, a U.S. IT specialized outlet, Google is reviewing a reorganization plan for its advertising sales division, which comprises 30,000 employees, and is expected to announce the reorganization plan next month.

Sean Downey, who oversees advertising sales targeting major corporations in the Americas, reportedly revealed the advertising sales team reorganization plan at a recent all-hands meeting. He did not disclose details such as whether layoffs would be included in this reorganization. Foreign media, citing sources, reported that Google plans to reassign and consolidate staff in the large advertiser sales department, which may include potential layoffs.

The main reason behind this reorganization is that Google’s adoption of AI technology in advertising on platforms like its search engine and YouTube has reduced the need for as many employees as before.

This year, Google enhanced advertising production efficiency by integrating generative AI features. By automatically generating and suggesting ad copy, descriptions, and images, it has become easier to create customized ads, significantly reducing the need for specialized advertising staff. Google is reportedly saving billions of dollars by increasing AI utilization on its advertising platforms.

One foreign media outlet analyzed, "This dramatic move reflects an increased reliance on AI technology capable of automating tasks traditionally performed by humans. It represents a significant change in the workforce of Google, the world’s largest big tech company, and indicates the growing influence of AI on corporate strategies and the labor market."

In the market, concerns are rising that generative AI, fueled by the popularity of OpenAI’s ChatGPT, could threaten human jobs. Earlier, U.S. investment bank Goldman Sachs projected in a report released in March that AI could replace up to 300 million full-time jobs.

Elon Musk, CEO of Tesla, predicted the arrival of a universal high-income era where AI does the work and people receive a basic income. He said, "There will come a time when no jobs are necessary," adding, "If you want a job, you can have one, but an era where AI can do everything is coming."