‘Work smarter, not bigger’: Google bets on AI as it cuts back on hiring new employees
Google CEO Sundar Pichai has acknowledged that intensifying global competition is accelerating the shift toward AI-powered workflows—and employees must quickly adapt.
At a recent all-hands meeting, Pichai made it clear that Google’s AI strategy isn’t just about investment. It’s about transformation.
“Anytime you go through a period of extraordinary investment, you respond by adding a lot of headcount, right?” he said, according to a recording obtained by CNBC. “But in this AI moment, we have to accomplish more by taking advantage of this transition to drive higher productivity.”
Pichai noted that companies worldwide are racing to become more efficient, adding: “We are competing with other companies in the world. There will be companies which become more efficient during this moment—especially in terms of employee productivity. That’s why it’s important to focus on that.”
Google isn’t alone in this pivot. Across the tech sector, companies are making it clear: AI is the future, and teams must adapt—or shrink.
Amazon CEO Andy Jassy recently told employees that the company’s corporate workforce would shrink over time as AI takes over more routine tasks. In a company-wide email, he urged staff to “get more done with scrappier teams.”
Microsoft’s Julia Liuson, who leads its developer tools division, said in June that “using AI is no longer optional.” Meanwhile, Shopify CEO Tobi Lutke went even further in April, telling teams they must prove AI can’t do a job before requesting more staff or funding.
At a recent all-hands meeting, Brian Saluzzo, who oversees Google’s technical infrastructure, unveiled the company’s roadmap for embedding AI across engineering workflows.
“We feel the urgency to really quickly and urgently get AI into more of the coding workflows,” Saluzzo said. “This is to address top needs and drive a much more rapid increase in velocity.”
To enable that, Google has developed a set of internal tools and learning platforms. One initiative, AI Savvy Google, includes toolkits, specialised courses, and live sessions tailored to each product area—ensuring that all engineers, not just AI experts, can integrate AI into their work.
“We have a portfolio of AI products available to employees so folks can go faster,” Saluzzo added.
Google’s engineering education team has partnered with DeepMind to launch a training programme titled Building with Gemini. The course will teach employees how to build effectively with Google’s Gemini AI platform and is set to roll out soon.
One of Google’s most-used internal tools is Cider, an AI-powered coding assistant launched in May. It’s already seeing 50% weekly usage across the company. “These tools will soon become a core part of software engineering work,” Saluzzo said. “Employees should expect them to continuously improve.”
Beyond internal efforts, Google is bolstering its AI push through acquisitions. In July, the company acquired high-profile AI startup Windsurf in a $2.4 billion deal. As part of the acquisition, Windsurf CEO Varun Mohan and several key engineers and researchers joined Google.
“I think they will end up helping a lot in this area as well,” Pichai said of the new hires.
Alphabet’s headcount stood at just over 187,000 full-time employees as of June 2025—slightly up from recent quarters but still below its 2023 peak of nearly 191,000. In early 2023, the company laid off around 6% of its workforce and has continued making targeted reductions since, including department-level buyouts.
The message from Google leadership remains clear: fewer people, better tools, and faster results.
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