Google's projected AI capex spend is $170-180 billion for this year. It's unreasonable to think AI would not be a reason for companies to consider layoffs.
3. Google is spending so much on AI that they can't afford to keep paying people, but they are ok with this because they are convinced the AI investment will replace the people at an eventual cost savings.
Google (and almost all other BigTech) is spending on scaling compute (data centers/securing power generation/chip contracts). My comment was not related to AI producivity and its impact on reduction of workforce. I believe a company spending nearly all its free cash flow on scaling compute (or borrowing money to do so) would have a different opinion on the economics of human capital.
Does that include R&D? Google is an AI _provider_, which is a considerably different profile in terms of spend from companies who are consumers. I would expect Google to be investing considerable resources to keep up with Anthropic and OpenAI.
1. Google is getting so much productivity out of their AI that they need fewer people.
2. Google is spending so much on AI they can’t afford to keep the people they need.