Alphabet Inc.’s Google has reduced its cloud division workforce, affecting fewer than 100 employees in sales operations, sources familiar with the matter said. The move is part of an effort to reallocate resources to artificial intelligence and other strategic business areas.
A Google spokesperson confirmed the layoffs, stating that the company is making adjustments to meet customer needs and capitalise on future opportunities. “As teams across Google have been doing, we are making changes to continue investing in critical areas for long-term success,” the spokesperson said.
The decision follows slower growth in Google’s cloud business and increasing investments in AI. Earlier this month, Alphabet missed analyst expectations for cloud revenue, while its 2025 capital expenditure projections surpassed forecasts.
The restructuring is part of broader workforce adjustments at Google. In January, the company launched a voluntary exit program for employees in its Platforms and Devices unit. Throughout 2024, Google implemented gradual workforce reductions as it reorganised different divisions.
The layoffs reflect a wider trend in the tech industry, where major firms like Amazon, Meta, Salesforce, and Microsoft have also trimmed their workforces or shifted to lower-cost international hiring. These companies are under pressure to invest in AI while maintaining profitability.
Despite the job cuts, Google Cloud remains a core focus. During Alphabet’s February earnings call, Chief Financial Officer Anat Ashkenazi noted that the company expects “some headcount growth in 2025 in key investment areas such as AI and cloud.”
Credit: BNNbloomberg (Text Excluding Headline)
