Google Shifts Focus from Smart TV to YouTube, Trims Budget and Staff

Google (GOOGL) is scaling back its smart TV ambitions, cutting the budget for Google TV and Android TV by 10% and reducing staff in the division. The move affects teams supporting platforms for Sony, Hisense, TCL, and Google's own TV device. Up to a quarter of the 300-person team may face layoffs, though Google plans to rehire in markets like India. Despite the cuts, the company emphasizes continued investment in Google TV, which powers over 270 million active Android TV devices.

The strategic pivot reflects YouTube's dominance as the most-watched U.S. streaming service, with viewership 67% higher than Netflix (NFLX). Google is channeling resources toward YouTube's $50B+ annual ad and subscription revenue stream. Combined with Google Cloud, the two divisions now generate over $110B—a figure that underscores where Alphabet sees its growth priorities.