Alphabet's Pichai Warns: More YouTube Layoffs Ahead, Creator Teams Shaken

January 18, 2024 - Reading time: 2 minutes

On Wednesday, Google is set to reduce its workforce at YouTube by 100 employees, marking another round of gradual layoffs following the elimination of over a thousand jobs recently.

Employees from YouTube's operations and creator management teams were informed of the job cuts through an email, revealed The New York Times.

The total workforce at YouTube stood at 7,173 employees on Tuesday.

What went wrong with YouTube?

YouTube derives a significant portion of its revenue from advertisements featured before and during videos. However, the platform's consistent growth faced a setback due to an advertising slowdown that commenced in late 2022. The slowdown was triggered by the impact of rising inflation and interest rates, leading advertisers to cut back on their budgets. YouTube experienced a decline in revenue for multiple quarters, with the trend reversing in June, reported The New York Times.

Nonetheless, ad sales have not yet surpassed their previous rate of growth. In response to these challenges, the platform has shifted its focus towards increasing subscriptions to YouTube TV, an alternative to traditional cable programming.

What did Sundar Pichai say?

In a message to employees on Wednesday, Sundar Pichai, the Chief Executive Officer of Google, indicated that they should anticipate ongoing cuts throughout the remainder of the year, although not on the same scale as the substantial reductions witnessed last year. As of the end of September, the company reported a workforce exceeding 182,000 employees, a notable increase from 119,000 in December 2019.

Approximately one year ago, Google initiated the process of reducing its workforce by about 6 per cent, equating to 12,000 individuals.

Who else laid off employees?

In recent weeks, several tech companies laid off employees. Discord, for instance, revealed plans to lay off 17 per cent of its workforce, equivalent to 170 individuals. Amazon implemented staff cuts across its Twitch streaming service, Prime Video, and MGM Studios, affecting hundreds of employees. Xerox announced a reduction of 15 per cent from its 23,000-person workforce, and Unity Software, a video game software provider, eliminated 25 per cent of its staff.

DW Staff

David Lintott is the Editor-in-Chief, leading our team of talented freelance journalists. He specializes in covering culture, sport, and society. Originally from the decaying seaside town of Eastbourne, he attributes his insightful world-weariness to his roots in this unique setting.