Tech giant Google cuts ties with around 200 AI contract workers amidst increasing workforce tension: Here's the lowdown
In a series of events unfolding over the past few months, contractors working for GlobalLogic, a Hitachi-owned outsourcing firm, have raised concerns about layoffs, pay disparities, and allegations of unfair dismissals. These contractors were responsible for reviewing AI-generated outputs, correcting answers, and ensuring the safety and accuracy of responses for Google's AI tools.
The layoffs, which took place in at least two rounds, have been a topic of discussion among the affected contractors. One organizer, who was later dismissed, suspects that the layoffs are tied to organizing efforts. This organizer had previously discussed low pay and job insecurity with the Alphabet Workers Union.
Membership of the Alphabet Workers Union among the affected contractors grew from under 20 in late 2024 to around 60 by early 2025. The union has been a strong advocate for fair pay, job security, and better working conditions for Google's contractors.
The dismissed organizer argues that the reasons given for his dismissal, "policy violations," were linked to his union activity. However, the report did not mention any specific policy violations that led to this decision.
Pay disparities were reported among the contractors, with some employees earning $28-32 per hour and others earning $18-22 for the same position. This discrepancy has been a point of contention among the workers.
Complaints against GlobalLogic have been filed with the National Labor Relations Board in the United States. The nature of these complaints was not specified in the report. GlobalLogic allegedly restricted access to internal communication platforms where pay equity was being discussed, adding to the workers' concerns.
Two contractors have since filed complaints with the US National Labor Relations Board, but the report did not mention any response from GlobalLogic or the subcontractors regarding these complaints.
Google, on the other hand, has stated that the affected workers were not its employees, and that GlobalLogic and subcontractors are responsible for their conditions. These contractors worked on Google's AI tools, including its Gemini chatbot and AI Overviews in Search.
The report did not specify the exact reasons for the layoffs, but several contractors suspect that the layoffs are tied to organizing efforts. GlobalLogic began assembling a team as Google's generative AI initiatives expanded in 2023.
This situation highlights the need for transparency and fair treatment in the employment of contractors working on high-profile projects like Google's AI initiatives. The ongoing complaints and allegations serve as a reminder for companies to prioritise fair labour practices and ensure a safe and equitable work environment for all employees, regardless of their employment status.
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