Google is significantly reducing its investment in Google TV. Recent reports indicate that the company has slashed its budget for Google TV and Android TV by 10 percent, resulting in a reduction of tens of millions of dollars allocated for these smart TV initiatives. Sources familiar with the situation revealed that these budget cuts could affect up to 25 percent of Google’s smart TV teams, which previously comprised around 300 employees. However, the company is also expanding its team in other regions, notably in India, and aims to rebuild its workforce to a similar size, albeit with a different distribution.
Despite the budget reductions, Google has assured stakeholders that it remains committed to the Google TV and Android TV platforms. In a statement to The Information, the company emphasized its ongoing investment in Google TV, highlighting the integration of new features, such as the upcoming Gemini initiative. Google noted that there are over 270 million Android TV devices in circulation and expressed enthusiasm for the growth potential within this ecosystem. The emphasis on Gemini is notable, as Google has been evidently prioritizing this project.
The company has made workforce adjustments across other divisions in recent months to allocate resources toward Gemini developments. For instance, hundreds of employees in Google’s platforms and devices division were let go in a move that reflects the company’s focus on AI-driven initiatives. Amidst these changes in the smart TV sector, YouTube continues to be a robust revenue generator for Google. For the first time, YouTube’s advertising and subscription revenue surpassed $50 billion in the year ending last September.
In light of its success, YouTube is also undergoing leadership changes, with former Disney executive Justin Connolly joining the team and a search underway for a new chief business officer.
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