Alphabet to Expand Engineering Workforce by 2026, Investing in AI Amid Tech Layoffs

Market IntelThursday, Jun 5, 2025 4:11 am ET
1min read

Alphabet Inc., the parent company of

Google
, has announced its intention to continue expanding its engineering workforce, despite a broader trend of layoffs among major technology companies. Sundar Pichai, the CEO of
Alphabet
, emphasized that the company will continue to invest heavily in artificial intelligence (AI) and that the engineering team will grow, at least until 2026. This expansion is seen as a strategic move to capitalize on the opportunities presented by AI, which Pichai views as a tool to significantly enhance the productivity of engineers by freeing them from routine tasks.

The decision to expand the engineering team comes at a time when other tech giants, including

Microsoft
, have been reducing their workforce. These layoffs are partly driven by the need to allocate resources towards maintaining a competitive edge in the AI sector, which requires substantial investment. Alphabet itself has undergone several rounds of layoffs in recent years to free up resources for strategic initiatives.

Pichai's vision for AI is both optimistic and realistic. While he acknowledges the potential of AI to revolutionize fields such as code writing, he also recognizes the current limitations of AI models, which can still make basic errors. When asked about the path to achieving Artificial General Intelligence (AGI), Pichai admitted that the industry is still far from a definitive answer.

The integration of AI into Google's search engine has raised concerns among some publishers about the potential impact on website traffic. Pichai addressed these concerns by reiterating Google's commitment to driving traffic to external content. He highlighted that the company has been meticulously testing AI Overviews to ensure that they bring high-quality external traffic. Pichai expressed confidence that Google will continue to operate in this manner for many years to come, emphasizing the company's dedication to providing a user experience that showcases links effectively.