In a recent report, The Information revealed that Google has reduced its budget for Google TV by 10%, sparking speculation about the company’s shifting priorities. While the reduction may seem modest at first glance, it also resulted in layoffs affecting about a quarter of the Google TV team, roughly 75 out of 300 employees.
This move aligns with a broader strategy, with Google reportedly focusing more on YouTube and its surrounding products.
The total budget for Google TV is reported to be around $500 million. While a 10% cut may appear small, it speaks volumes when paired with the layoffs. Google TV, which operates as the company’s smart TV software, has been preloaded on devices from manufacturers like TCL and Hisense. It builds on Android TV and offers personalized content recommendations, but has struggled to compete against dominant players like Roku, Fire TV, and Apple TV.
Despite these challenges, Google has confirmed that it is not abandoning Google TV. A Google TV representative provided a statement, saying: “We continue to invest in Google TV with new user experiences, including the upcoming integration of Gemini. There are more than 270 million Android TV devices, and we remain committed to growing this ecosystem with an exciting road map ahead.”
The upcoming Gemini integration is expected to bring new AI-powered features to Google TV, including voice control, smarter content recommendations, and improved navigation. If successful, these enhancements could help the platform stay competitive in the increasingly crowded smart TV market.
However, Google seems to be investing more heavily in YouTube, with reports suggesting that the company may redesign YouTube to resemble traditional streaming services like Netflix or Disney+. This could involve a revamped user interface, premium content, or subscription-based show programming. Though no official announcements have been made, it’s clear that Google is prioritizing YouTube as its main entertainment platform.
For now, Google TV will continue to exist, but the recent budget cuts and layoffs signal that it may not be the company’s primary focus. With a greater emphasis on platforms with larger user bases and stronger growth potential, Google’s strategy appears to be shifting accordingly.