Google executives are urging employees to become more skilled in using artificial intelligence (AI) as the company faces growing pressure to improve efficiency and reduce costs.
At an internal all-hands meeting last week, CEO Sundar Pichai told staff that Google must “drive higher productivity” and “accomplish more” by using AI tools, according to audio obtained by CNBC. He said the company is entering a period of high investment, including a planned $85 billion in capital expenditures for 2025, up from $75 billion earlier this year.
“We are competing with other companies in the world,” Pichai said. “There will be companies which become more efficient through this moment… It’s important to focus on that.”
Google is not alone in this shift. Tech giants such as Amazon, Microsoft, and Shopify have made similar moves, encouraging employees to adopt AI in their daily work. Amazon CEO Andy Jassy recently told staff that corporate headcount would shrink as the company relies more on generative AI. Microsoft has said that using AI is now “no longer optional.”
Despite recent growth, Google’s workforce remains smaller than its peak in 2023. The company had about 187,000 full-time employees at the end of June, down from nearly 191,000 in 2023. Google cut about 6% of its workforce early last year and has continued to reduce staff in some departments since.
Brian Saluzzo, who leads developer teams in Google’s core organization, said the company is building AI tools specifically for software engineers. He introduced “Cider,” an internal coding assistant that has seen weekly use by half its users since launching in May. Google has also launched “AI Savvy Google,” a training hub that includes toolkits, courses, and sessions created with DeepMind, including a program called “Building with Gemini.”
“These tools will become a pretty integral part of most software engineering work,” Saluzzo said.
Google’s investment in AI talent also continues. Earlier this month, the company acquired executives from startup Windsurf in a $2.4 billion deal. Windsurf CEO Varun Mohan and several top engineers are joining Google to strengthen its AI capabilities.
Google declined to comment on the meeting or the executives’ remarks.
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