Google is changing how it works — and it’s asking employees to do the same. At a recent all-hands meeting, CEO Sundar Pichai urged staff to embrace artificial intelligence (AI) fully and improve productivity without expanding headcount.

The shift comes as Alphabet, Google’s parent company, increases its capital spending to $85 billion in 2025 — much of it aimed at building infrastructure for AI models and services.

Pichai’s Message: Fewer People, More Output

Pichai made it clear that this isn’t business as usual.

“In the past, big investments meant more hiring. But in this AI moment, we must get more done with fewer resources,” he said.

Google plans to stay lean, even while spending more. As of June 2025, Alphabet employs just over 187,000 people, still below its 2023 peak of nearly 191,000. Earlier workforce reductions — including a 6% layoff in 2023 and recent buyouts — signal a new phase: leaner teams empowered by smarter tools.

Big Tech’s AI Productivity Race

Google isn’t alone in pushing for AI-driven efficiency:

• Amazon’s CEO Andy Jassy recently said the corporate workforce will shrink as AI takes over more tasks.
• Microsoft’s Julia Liuson declared AI use “non-optional” for developers.
• Shopify CEO Tobi Lütke told teams to prove AI can’t do the job before requesting new hires.

The message is consistent: use AI or fall behind.

Inside Google’s AI Productivity Roadmap

Brian Saluzzo, who oversees Google’s technical foundations, outlined how engineering teams are integrating AI into daily workflows. The company has launched a platform called AI Savvy Google, offering toolkits, training sessions, and coding assistance across teams.

“We want a rapid increase in development speed,” Saluzzo said. “AI is being embedded directly into coding workflows.”

Key initiatives include:

• Cider – an internal AI coding assistant, already used weekly by 50% of developers
• “Building with Gemini” – a new training program in partnership with DeepMind, focused on Google’s Gemini AI platform
• AI usage as the new norm – engineers are expected to adopt AI tools as standard practice

Acquisitions and Investments Power the Shift

To accelerate progress, Google recently acquired Windsurf, a high-profile AI startup, for $2.4 billion. Windsurf’s CEO Varun Mohan and key staff have joined Google’s AI team.

Pichai said the acquisition would “help a lot” in scaling AI across the company.

Despite major investments, Google’s approach remains cautious with staffing. The company wants its people to “move with the moment” — leaning on AI to drive performance, not manpower.

Google declined to comment publicly on the internal meeting. But the direction is clear: AI is the future of work at Google, and every employee is expected to adapt.

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