Google makes a harsh decision, frustrating workers

It is no secret that Google (GOOGL) , owned by Alphabet, recently ramped up its investment in artificial intelligence to keep up with competitors in the tech industry.

In July, Google revealed that it would invest $25 billion in data centers and artificial intelligence infrastructure in several U.S. states over the next two years.

It will also spend $3 billion to modernize two hydropower plants in Pennsylvania, which will help meet the growing power demand from data centers and AI in the region.

Google has also further developed its Google Gemini AI assistant and is reportedly working on creating its own AI-powered smart glasses.

In conjunction with its growing AI investment, Google has also been dramatically shrinking its workforce.

In February, Google announced layoffs in its cloud and HR teams to “operate more efficiently” and “remove layers” in its organization.

In April, it also laid off hundreds of employees in its platforms and devices unit, which is responsible for developing Android, Pixel, Chrome, Fitbit and other Google devices and applications.

Google even fired 35% of its managers last month to boost efficiency, which affected those who ran smaller teams.

Google sends a harsh notice to workers

Google has once again conducted another round of job cuts. This time, it fired over 200 contract workers who worked on developing Google’s AI products, according to a recent report from Wired.

These workers, employed by GlobalLogic, were outsourced by Google to examine and edit Google Gemini chatbot’s responses to make them sound more intelligent and human-like.

“I was just cut off,” said Andrew Lauzon, one of the fired Google contract workers, in an interview with Wired. “I asked for a reason, and they said ramp-down on the project— whatever that means.”

The layoffs came shortly after the workers began pushing for better pay and job security amid alleged stressful working conditions. 

In one case, some who were assigned to a certain project were expected to complete tasks within five minutes and threatened with job termination if they failed to do so.

Related: Google quietly doubles down on a controversial workplace trend

GlobalLogic also mandated that workers in Austin, Texas, return to in-person work, impacting those who couldn’t travel to the office due to the expense, or who couldn't go to work because of disabilities or caregiving duties.

Some of them even suspected that GlobalLogic was using them to train Google’s AI system to automatically rate its responses, with the goal of replacing humans with AI.

Last spring, some of the workers began talks with the Alphabet Workers Union about unionizing to fight for their demands. By February of this year, 60 contract workers had joined the unionization effort.

“We started building the movement underground,” said Ricardo Levario, another fired Google contract worker, while speaking to Wired. “We were essentially laying down the foundation for our union, developing our systems.”

GlobalLogic later began banning employees from using Google’s social chat channels during work hours. Workers used these channels to connect with each other about mutual interests and discuss pay parity.

Now, some workers allege that the recent job cuts are a response to their unionization push. Two workers have even filed a complaint with the National Labor Relations Board, claiming they were unfairly fired.

“These individuals are employees of GlobalLogic or their subcontractors, not Alphabet," said a Google spokesperson in a statement to Wired. "As the employers, GlobalLogic and their subcontractors are responsible for the employment and working conditions of their employees. We take our supplier relations seriously and audit the companies we work with against our Supplier Code of Conduct.”

Google's job cuts signal a growing concern in corporate America

Google's recent job cuts follow a growing trend in the tech industry. Many tech giants, such as Intel, Amazon and Meta, have also been drastically shrinking their workforce as AI continues to boom in popularity.

According to recent data from Layoffs.fyi, 204 tech companies have so far conducted layoffs this year, resulting in almost 90,000 employees losing their jobs.

More Labor:

• Intel quietly pulls back major employee commitment amid troubles
• Google quietly doubles down on a controversial workplace trend
• Samsung cracks down on an alarming workplace problem

A recent 2025 World Economic Forum survey even found that 41% of companies across the globe expect to downsize their workforce in the next five years due to AI and its ability to replicate people’s work.

This could lead to a startling spike in unemployment across the country. In a recent report, Goldman Sachs Research estimates that if AI is widely adopted, it could displace 6 to 7% of the U.S. workforce.

“A recent pickup in AI adoption and reports of AI-related layoffs have raised concerns that AI will lead to widespread labor displacement,” said Joseph Briggs, who co-leads the global economics team at Goldman Sachs Research, and economist Sarah Dong, in the report. 

“While these trends could broaden as adoption increases, we remain skeptical that AI will lead to large employment reductions over the next decade.”

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