Google has cut its Google TV and Android TV budget by 10 percent, reducing funding by tens of millions of dollars for the company’s smart television initiatives, according to an exclusive report by The Information. The cuts have affected up to a quarter of the 300-member smart TV team, with layoffs accompanying the budget reduction.The budget slash comes as Google prepares to integrate its Gemini AI assistant into TV platforms later this year, positioning televisions as central hubs for smart home interaction. Despite the financial constraints, Google maintains its commitment to the platform, citing over 270 million active Android TV devices globally.
Google shifts focus to YouTube
The timing coincides with Google’s strategic pivot toward YouTube, which generated over $50 billion in advertising and subscription revenue for the 12-month period ending last September. The Information reports that Google is redesigning YouTube to resemble streaming services like Netflix and Disney+, emphasizing paid content and premium experiences.YouTube’s success has prompted executive changes, with the platform hiring former Disney executive Justin Connolly for partnerships and seeking a successor to chief business officer Mary Ellen Coe. Sources familiar with the matter indicate YouTube VP Christian Oestlien is being considered for the role.
Jobs move overseas as US team shrinks
While reducing its US-based smart TV workforce, Google plans to expand hiring in international markets, particularly India, aiming to rebuild the team to similar headcount levels but with global distribution. The company’s original TV platform budget was reportedly under $500 million before the reduction.“We continue to invest in Google TV with new user experiences including the upcoming integration of Gemini,” a Google spokesperson told The Information. “There are more than 270 million Android TV devices, and we remain committed to growing this ecosystem with an exciting road map ahead.”The cuts reflect broader restructuring within Google’s platforms and devices division, which has seen multiple rounds of layoffs in recent months as the company prioritizes AI development and profitable ventures.
