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- What Google’s buyout offers reveal about the changing tech workforce
What Google’s buyout offers reveal about the changing tech workforce
CNBC’s Deirdre Bosa joins 'Money Movers' to discuss Google's buyouts for certain parts of the company.
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Google is now offering buyouts to employees across several divisions but including its core search and advertising units.
Seems to be just the latest sign that tech is reshaping its workforce around AI.
Deirdre Bosa has more in today's Tech Check. Deirdre.
Hey Kelly. So it's soft layoffs like buyouts and performance nudges but that's just part of the story.
Big tech, workforces, they are being rebuilt from the inside out to really reorient around AI.
Now the telling part of Google's latest buyouts is that it's reaching into its search and ad teams still that core profit engine
Suggesting that legacy roles are being phased out may be phased out to make room for different skills and different priorities now
That does mean exits, but also strategic hires and high-level reorganizations like Alexander Wang to Meta to lead superintelligence.
And Sima 4 just reporting in the last hour or so, Google crowning a new chief architect, reporting directly to CEO Sundar Pichai.
Now, his job, it's a promotion. He was already in Google.
But it's now to translate raw model performance into real products.
And that could be seen as a signal that AI is the new operating system for the company.
Now, Google's memo about the buyouts makes the subtext pretty clear in it, which our
General Elias got a hold of.
A Google executive wrote to employees, if you don't feel aligned, this is your exit
path.
So, in other words, stay if you're on board with the strategy or leave quietly if you're
not.
Now, next hour, Kelly, I'm sitting down with Ali Ghodsi, CEO of Databricks, at their AI
Summit in San Francisco.
He is competing with the likes of Google and OpenAI and others for talent.
The talent war is heating up.
So I'll ask him about how he's thinking
about his own workforce in this new era.
It is a great lineup here, by the way.
Just heard from Anthropx, Dario Amodei,
and Jamie Dimon, I can see, is on stage with Ali right now.
But would you say, Deirdre,
we can definitively draw the conclusion
that this is AI-related?
That's what's so hard with all of these headlines, right?
We had the years of efficiency that were happening anyway.
Now you have AI.
And so we all want to jump and say, you know,
Occam's razor, it's because of AI that they're doing that.
And maybe that's the case,
But do we know that for a fact?
I would say, for me, it feels like a fact.
because of all the people I'm talking to here
and on the ground, it is the one thing that matters the most.
And when you have to make way for these massive paychecks
for these white paper AI scientists
that are getting up to $20 million over four years,
it seems obvious.
It also seems obvious when you read through the transcripts
on their earnings call,
it really is the thing that is moving everything,
especially within companies like Google and Microsoft
and Meta and the startups.
Maybe for some of the others that aren't as all in,
