Sundar Pichai, CEO of Google and Alphabet Inc., speaks at the inaugural 2024 Business, Government, and Society Forum at the Stanford Graduate School of Business in Stanford, California, on April 3, 2024.
Carlos Barria | Reuters
Five years removed from the onset of the Covid pandemic, Google is demanding that some remote employees return to the office if they want to keep their jobs and avoid being part of broader cost cuts at the company.
Several units within Google have told remote staffers that their roles may be at risk if they don’t start showing up at the closest office for a hybrid work schedule, according to internal documents viewed by CNBC. Some of those employees were previously approved for remote work.
As the pandemic slips further into the rearview mirror, more companies are tightening their restrictions on remote work, forcing some staffers who moved to distant locations to reconsider their priorities if they want to maintain their employment. The change in tone is particularly acute in the tech industry, which jumped so aggressively into flexible work arrangements in 2020 that San Francisco’s commercial real estate market is still struggling to recover.
Google began offering some U.S. full-time employees voluntary buyouts at the beginning of 2025, and some remote staffers were told that would be their only option if they didn’t return to the nearest office at least three days a week.
The latest threats land at a time when Google and many of its tech peers are looking to slash costs while simultaneously pouring money into artificial intelligence, which requires hefty expenditures on infrastructure and technical talent. Since conducting widespread layoffs in early 2023, Google has undertaken targeted cuts across various teams, emphasizing the importance of increased AI investments.
As of the end of last year, Google had about 183,000 employees, down from roughly 190,000 two years earlier.
Google co-founder Sergey Brintold AI workers in February that they should be in the office every weekday, with 60 hours a week being “the sweet spot of productivity,” according to a memo viewed by CNBC. Brin said the company has to “turbocharge” efforts to keep up with AI competition, which “has accelerated immensely.”
Courtenay Mencini, a Google spokesperson, said the decisions around remote worker return demands are based on individual teams and not a companywide policy.
“As we’ve said before, in-person collaboration is an important part of how we innovate and solve complex problems,” Mencini said in a statement to CNBC. “To support this, some teams have asked remote employees that live near an office to return to in-person work three days a week.”
According to one recent notice, employees in Google Technical Services were told that they’re required to switch to a hybrid office schedule or take a voluntary exit package. Remote employees in the unit are being offered a one-time paid relocation expense to move within 50 miles of an office.
Remote employees in human resources, or what Google calls People Operations, who live within 50 miles of an office, are required to be in person on a hybrid basis by mid-April or their role will be eliminated, according to an internal memo. Staffers in that unit who are approved for remote work and live more than 50 miles away from an office can keep their current arrangements, but will have to go hybrid if they want new roles at the company.
Google previously offered a voluntary exit program to U.S.-based full-time employees in People Operations, starting in March, according to a memo sent by HR chief Fiona Cicconi in February.
That came after the company said in January that it would be offering voluntary exit packages to full-time employees in the U.S. in the Platforms and Devices group, which includes Android, Chrome and products like Fitbit and Nest. The unit has made cuts to nearly two-dozen teams as of this month. While internal correspondence indicated that remote work was a factor in the layoffs, Mencini said it was not a main consideration for the changes.
A year ago, Google combined its Android unit with its hardware group under the leadership of Rick Osterloh, a senior vice president. Osterloh said in January that the voluntary exit plan may be a fit for employees who struggle with the hybrid work schedule.
Mencini told CNBC that, since the groups merged, the team has “focused on becoming more nimble and operating more effectively and this included making some job reductions in addition to the voluntary exit program.” She added that the unit continues to hire in the U.S. and globally.
South Korea’s data protection authority has concluded that Chinese artificial intelligence startup DeepSeek collected personal information from local users and transferred it overseas without their permission.
The authority, the Personal Information Protection Commission, released its written findings on Thursday in connection with a privacy and security review of DeepSeek.
It follows DeepSeek’s removal of its chatbot application from South Korean app stores in February at the recommendation of PICP. The agency said DeepSeek had committed to cooperate on its concerns.
During DeepSeek’s presence in South Korea, it transferred user data to several firms in China and the U.S. without obtaining the necessary consent from users or disclosing the practice, the PIPC said.
The agency highlighted a particular case in which DeepSeek transferred information from user-written AI prompts, as well as device, network, and app information, to a Chinese cloud service platform named Beijing Volcano Engine Technology Co.
While the PIPC identified Beijing Volcano Engine Technology Co. as “an affiliate” of TikTok-owner ByteDance, the information privacy watchdog noted in a statement that the cloud platform “is a separate legal entity and has no relation to ByteDance,” according to a Google translation.
According to PIPC, DeepSeek said it used Beijing Volcano Engine Technology’s services to improve the security and user experience of its app, but later blocked the transfer of AI prompt information from April 10.
DeepSeek and ByteDance did not immediately respond to inquiries from CNBC.
The Hangzhou-based AI startup took the world by storm in January when it unveiled its R1 reasoning model, rivaling the performance of Western competitors despite the company’s claims that it was trained for relatively low costs and with less advanced hardware.
However, the app’s rising popularity quickly triggered national security and data concerns outside China due to Beijing’s requirement for domestic firms to share data with the PRC. Cybersecurity experts have also flagged data vulnerabilities in the app and voiced concerns about the company’s privacy policy.
PIPC on Thursday said it had issued a corrective recommendation to DeepSeek, which includes requests to immediately destroy AI prompt information transferred to the Chinese company in question and to set up legal protocols for transferring personal information overseas.
When the data protection authority announced the removal of DeepSeek from local app stores, it signaled that the app would become available again once the company implemented the necessary updates to comply with local data protection policy.
That investigation followed reports that some South Korean government agencies hadbanned employees from using DeepSeek on work devices. Other global government departments, including in Taiwan, Australia, and the U.S., have reportedly instituted similar bans.
Adobe’s new artificial intelligence image models, Firefly Image Model 4 and Firefly Image Model 4 Ultra, can generate hyper-realistic pictures in response to user prompts.
Adobe
LONDON — Adobe plans to launch a mobile version of its artificial intelligence image generation tool Firefly, stepping up a challenge to OpenAI as the Microsoft-backed startup advances its efforts on visual applications for the technology.
The design software giant said Thursday at its MAX creativity conference in London that it will release Firefly on both iOS and Android “soon,” without giving a specific date.
“Creative people think on the go,” Alexandru Costin, vice president of Adobe Firefly, told CNBC in an interview. “One of the visions we have is for the Firefly mobile application to become a creative partner that sits with you all the time.”
Costin said that one way creatives could use its upcoming mobile app was to ask it to sketch up some ideas about an ad campaign while commuting to the office, so that by the time they arrive at work they’ve got a mood board to help them develop their thinking.
Adobe also announced the launch of its latest AI models, Firefly Image Model 4 and Firefly Image Model 4 Ultra, and said its new Firefly Video Model for video generation is now generally available.
The company said the new systems are capable of generating hyper-realistic pictures and videos in response to textual prompts in a “commercially safe” way, blocking the inclusion of any intellectual property.
Competition from OpenAI
It marks Adobe’s latest push to incorporate AI into its creative tool suite and comes as the company is increasingly facing competition from well-funded AI firms such as OpenAI and Runway.
Last month, OpenAI released a native image generation feature that went viral online for its ability to produce anime images in the style of animation studio Studio Ghibli and recreate people as toy dolls.
The tool saw such huge levels of demand that OpenAI boss Sam Altman warned it was melting the company’s GPUs (graphics processing units). “It’s super fun seeing people love images in ChatGPT. But our GPUs are melting,” Altman said on March 27.
While Adobe’s Costin conceded that the competitive environment is heating up, he said the company isn’t shying away from partnering with the competition. For example, Adobe has partnered up with the likes of OpenAI, Google and Runway to add their AI image generation tools to Firefly.
“Competition is great,” Costin told CNBC. “We think there will be models with different personalities and capabilities.”
Revolut CEO Nikolay Storonsky at the Web Summit in Lisbon, Portugal, Nov. 7, 2019.
Pedro Nunes | Reuters
LONDON — British fintech firm Revolut on Thursday announced it topped $1 billion in annual profit for the first time, a major milestone for the company as it readies the launch of its U.K. bank later this year.
Revolut, which offers a range of banking and financial services via an app, said that net profit for the year ending Dec. 31, 2024, totaled £1.1 billion ($1.5 billion), up 149% year over year. Revenues at the company increased 72% year on year to £3.1 billion, driven by growth across different revenue streams.
Revolut’s wealth unit — which includes its stock-trading business — saw outsized growth, with revenue surging 298% to £506 million, while subscriptions turnover jumped 74% to £423 million.
Revolut also saw significant growth in its loan book, which grew 86% to £979 million. Coupled with a jump in customer deposits, this contributed to a 58% increase in interest income, which totaled £790 million.
UK bank rollout
Revolut’s financial milestone arrives at a critical time for the almost decade-old-firm. The digital banking unicorn has been preparing a transition to becoming a fully operational bank in the U.K. after securing a banking license last summer.
It was granted a banking license with restrictions in July 2024 from the U.K.’s Prudential Regulation Authority, bringing an end to a lengthy application process that began back in 2021.
The restricted license means that Revolut is now in the “mobilization” stage, where it is focusing on building out its banking operations and infrastructure in the run-up to a full launch. The period typically lasts about 12 months.
Revolut is still awaiting approval from regulators to transfer all 11 million of its U.K. users to a new banking entity this summer. Once fully up and running, the firm will be able to begin offering loans, overdrafts and mortgages, opening up the path to new income streams.
‘Customers trust banks’
Victor Stinga, Revolut’s chief financial officer, told CNBC on Thursday that the company’s aim is to formally launch its U.K. bank later this year.
“As you can imagine, at this scale, it’s a thorough process, and we just pay a lot of attention to it,” Stinga said. “We work very closely on a close contact with the PRA [Prudential Regulation Authority] and the FCA [Financial Conduct Authority] on it. We feel like we’re making great progress on it.”
Stinga said that a big advantage of becoming a bank in the U.K. is ability to start accepting deposits protected by government guarantees. Licensed banks are covered by the Financial Services Compensation Scheme, which means their customers can claim up to £85,000 if a lender goes out of business.
“Customers trust banks, so it means customers on this transition will use Revolut as a primary bank account,” Stinga said.
Lending is arguably “the biggest roadmap item that this unlocks,” Revolut’s CFO said, adding that the firm is looking at launching credit cards and personal loans, similar to the products it already offers in the European Union under a separate EU banking license.
Francesca Carlesi, Revolut’s U.K. boss, previously told the Wall Street Journal that Revolut views its journey to becoming a U.K. bank as a crucial step in its global expansion and eventual IPO. “My main strategic focus is making Revolut the primary bank for everybody in the U.K.,” she told the WSJ.
It has a steep hill to climb — rivals Monzo and Starling have had a lengthy head start on Revolut. Monzo obtained its full banking license in 2017, while Starling was granted its own permit in 2016.