Why is YouTube laying off 100 employees?

Is YouTube laying off 100 employees to trim costs and embrace AI?

In a surprising move, Google-owned YouTube has announced plans to lay off 100 employees from its creator management teams. This decision comes as part of a strategic restructuring within the company, aiming to streamline operations and enhance efficiency.

YouTube is making changes in its operations, leading to the layoff of approximately 100 employees, as revealed in a memo from Mary Ellen Coe, YouTube’s chief business officer. This move is part of a broader restructuring effort aimed at ensuring effective business operations and meeting the evolving needs of users.

Coe explained in the memo that the decision to eliminate some roles is driven by the necessity to adapt to the changing landscape of the business. The affected positions account for around 1.4% of YouTube’s workforce, totaling nearly 7,200 employees. The focus of the cutbacks is on YouTube’s creator management teams, where leadership will now be dedicated to individual countries instead of regions.

In addition to these changes, YouTube is implementing other structural adjustments. The music teams will now report to Lyor Cohen, the head of music for both Google and YouTube. Furthermore, the sports, media, film, and TV teams will be consolidated into a unified global team.

The news of YouTube’s layoffs and restructuring was initially reported by Tubefilter. This move follows Google’s recent layoffs, affecting over 1,000 employees across various teams, including the core engineering group, Google Assistant team, and certain augmented-reality projects.

Mary Ellen Coe assumed the role of YouTube’s chief business officer in the fall of 2022 after Robert Kyncl’s departure, who is currently the CEO of Warner Music Group.

YouTube has faced increased competition in recent years, particularly from the popular video entertainment app TikTok. In response, YouTube introduced a feature called YouTube Shorts, mirroring TikTok’s format. Additionally, to boost growth, YouTube secured an exclusive multibillion-dollar deal for the NFL Sunday Ticket out-of-market games package, extending through the 2029 football season. These strategic moves reflect YouTube’s ongoing efforts to stay competitive and adapt to the dynamic digital landscape.

Also read: Dead man starts breathing when ambulance hits a pothole