Layoffs are becoming increasingly common, with YouTube being the latest to announce a reduction in its workforce. These cuts in Google’s video-sharing division will allow the company to reduce costs. Interestingly, these layoffs come at a time when companies are adopting artificial intelligence.
Google announced yesterday that it will cut 100 employees from its YouTube video platform. This comes on the heels of Google firing over a thousand employees from various divisions last week. Furthermore, just yesterday, it was revealed that “hundreds” of additional layoffs would be focused on Google’s advertising sales business.
Google continues to expand its layoffs, now affecting YouTube.
Curiously, this announcement of layoffs at YouTube comes a week after Twitch made a similar move. Last week, Twitch announced it would lay off 35% of its workforce, approximately 500 employees. Two days later, its CEO stated that the platform was not profitable, hence the layoffs. Now YouTube is joining in on the layoffs, although its workforce will still be significantly larger than Twitch’s.
According to reports, the popular video platform employed at least 7,173 workers until last Tuesday. Thus, the dismissal of 100 employees represents a very low percentage. It should also be noted that the layoffs have only affected workers in direct contact with content creators on the platform. Specifically, Google notified YouTube operations and creator management team employees that their positions had been eliminated, as reported by The New York Times.
“We have made the decision to eliminate some roles and say goodbye to some of our teammates,” wrote YouTube’s business director, Mary Ellen Coe, in a note to the organization’s employees. “Anyone in the Americas” and the Asia-Pacific region “who is or may be affected will be notified by the end of today,” the note said.
Market slowdown and the rise of TikTok
Among the reasons for the layoffs is the advertising slowdown of 2023. On top of this is the strong and unexpected competition with TikTok. This short-video platform significantly cannibalizes visits. YouTube tried to copy the strategy with shorts, but it was not profitable, as the added value of longer videos was lost in generating this type of content that generates much less revenue.
“We are responsibly investing in our company’s top priorities and the significant opportunities ahead of us,” said YouTube’s director of corporate communications in a statement.
“Several Google teams carried out layoffs and reorganizations in the second half of 2023, and some teams continue in 2024 making these types of organizational changes, which include some global role eliminations.
The news of YouTube joining the layoffs, with at least 100 creator support employees leaving the company, was first reported on El Chapuzas Informático.