Google recently announced a significant reorganization within its “Core” teams, leading to the displacement of at least 200 employees. The Core unit, responsible for building the technical foundation behind the company’s flagship products and ensuring user safety, will be relocating some roles to India and Mexico. This move comes in conjunction with the elimination of engineering positions, with about 50 layoffs observed in Sunnyvale, California.

Asim Husain, the vice president of Google Developer Ecosystem, conveyed the news of these layoffs through an email to his team, citing it as the most extensive planned reduction for his department this year. In response to the changes, Husain highlighted the company’s intention to maintain its global footprint while expanding in regions with high-growth potential.

Alphabet, Google’s parent company, has been undergoing restructuring since last year, aiming to streamline operations and optimize costs. The company’s CFO, Ruth Porat, revealed plans for restructuring within the finance department, including layoffs and shifts to Bangalore and Mexico City. This ongoing reorganization aligns with the goal of building teams in cost-efficient markets like India and Brazil.

Despite the layoffs, Google has been experiencing significant growth, reporting a 15% increase in first-quarter revenue compared to the previous year. This positive trajectory has allowed the company to announce its first-ever dividend and a substantial buyback. The strategic alterations within the organization aim to set the stage for sustainable growth and operational efficiency.

In light of the changes, developers and employees affected by the reorganization have been reassured by company leaders that these actions are integral to achieving broader corporate objectives. The emphasis on generative AI and the integration of advanced technologies like Gemini into Google’s products signifies a strategic shift towards innovation and adaptability in a rapidly evolving tech landscape.