Google Layoffs 2025: Over 200 AI Contractors Axed in Ramp-Down Move

Tech giant Google has laid off more than 200 contractors working on its artificial intelligence projects, including Gemini and AI Overviews. According to reports, the decision has sparked widespread concerns over job security, wage disparity, and retaliation against unionisation efforts.

The layoffs, first reported by WIRED, highlight growing tensions in the AI workforce as contractors play a critical role in shaping generative AI tools but remain vulnerable to sudden terminations.

Sudden Cuts Without Warning

Sources confirmed that the layoffs happened abruptly last month in at least two separate rounds. Many workers said they were given no prior notice about their jobs ending.

One of the affected workers, Andrew Lauzon, revealed that he was cut off through an email on 15 August. The message stated that his contract had ended due to a “ramp-down” of the project. “I was just cut off,” Lauzon told WIRED. “I asked for a reason, and they said ramp-down on the project—whatever that means.”

Lauzon had joined Hitachi-owned GlobalLogic in March 2024 and was working on rating and improving the performance of Gemini, Google’s AI chatbot, and other related AI systems. Expressing frustration, he added, “How are we supposed to feel secure in this employment when we know that we could go at any moment?”

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Key Role in Training Google’s AI

The contractors who lost their jobs were part of an elite group referred to as “super raters.” Their main responsibility was to evaluate and refine AI-generated responses to make them sound natural and accurate.

These raters were seen as a crucial link between engineering teams and end-users. Many of them came from diverse academic and professional backgrounds, holding advanced degrees such as master’s and PhDs in fields like education, writing, and the arts.

Their work significantly shaped Google’s AI products, including the AI Overviews feature, which summarises search results using generative AI. One rater explained the importance of their role: “We as raters play an incredibly vital role. The engineers, between messing with the code and everything, they’re not going to have the time to fine-tune and get the feedback they need for the bot. We’re like the lifeguards on the beach—we’re there to make sure nothing bad happens.”

Concerns Over Low Pay

While the contractors’ work was vital to improving Google’s AI systems, reports revealed sharp pay disparities. Ricardo Levario, a Texas-based teacher and one of the first super raters hired, pointed out that GlobalLogic paid directly hired super raters between $28 and $32 an hour.

In contrast, third-party contractors performing the same tasks earned just $18 to $22 an hour. This gap triggered resentment among workers and fuelled their push for fairer wages and better working conditions.

Allegations of Retaliation Against Union Efforts

The layoffs also raised questions about whether they were linked to unionisation drives among AI contractors. Several workers claimed they had faced retaliation for organising. At least two of them filed complaints with the US National Labor Relations Board (NLRB).

One contractor alleged they were dismissed after raising concerns about wage transparency, while another said they were terminated after advocating for their colleagues. These allegations added weight to suspicions that the cuts may not have been purely about a “ramp-down” of projects.

Role of GlobalLogic

Most of the contractors were employed through GlobalLogic, a company owned by Hitachi. They were responsible for supplying talent to help train and refine AI systems at Google.

The outsourcing structure meant contractors did not enjoy the same job security as full-time Google employees, making them more vulnerable to abrupt contract terminations. This setup also intensified disputes over wage gaps and the treatment of contract workers.

Growing Discontent in AI Workforces

The situation at Google mirrors wider unrest in the artificial intelligence industry, where companies depend heavily on contractors for training data, evaluation, and content moderation. While these jobs are essential, workers often face precarious contracts, lower pay, and fewer benefits compared to permanent staff.

The dismissals at Google’s AI projects highlight the challenges of balancing rapid AI development with fair treatment of the workforce powering it.

What Lies Ahead for Contractors

For the contractors who were laid off, uncertainty looms large. Many had built specialised expertise in training large language models and fine-tuning generative AI responses. However, the lack of long-term security raises concerns about whether such roles can remain viable careers.

Workers like Lauzon and Levario have voiced the need for stronger protections, transparent wage structures, and recognition of their contributions to AI systems used by millions worldwide. The unionisation push, though faced with challenges, could intensify as contractors look for ways to safeguard their rights.

Industry Context

The layoffs come at a time when major tech companies are re-evaluating their workforce strategies in AI projects. Recently, Elon Musk’s xAI also announced large-scale layoffs, including 500 jobs in data annotation teams.

While companies argue such decisions are tied to shifting strategies and project ramp-downs, critics say they expose the fragile conditions of the very workers who make AI advancements possible.

Key Highlights

• Google has reportedly laid off over 200 contractors working on AI projects, including Gemini and AI Overviews.

• Layoffs happened in at least two rounds last month with little or no warning.

• Affected workers included “super raters” tasked with evaluating and refining AI responses.

• Pay disparities reported: GlobalLogic direct hires earned $28–$32/hour, while third-party contractors got $18–$22/hour.

• Workers allege layoffs were linked to unionisation efforts; two complaints were filed with the NLRB.

• Contractors fear growing job insecurity despite playing a crucial role in training AI systems.

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