Google has announced further job cuts in its cloud division, affecting fewer than 100 employees. This move is part of the company’s ongoing efforts to streamline operations and invest more heavily in artificial intelligence (AI).
According to a report by Bloomberg, the layoffs which primarily impact sales operations, are intended to free up resources for strategic investments in AI and other critical business areas. A Google spokesperson told Bloomberg, “We continue to make adjustments to meet our customers’ needs and the significant opportunity ahead. As teams have been doing across the company, we’re making changes to continue to invest in areas that are critical to our business and ensure our long-term success.”
The decision comes in the wake of slower growth in Google’s cloud business and substantial spending aimed at supporting the tech giant’s AI ambitions. Earlier this month, Alphabet missed analysts’ revenue projections for its cloud division, reporting $11.96 billion in cloud revenue for the fourth quarter of 2024, falling short of the expected $12.19 billion.
Google’s latest job cuts follow previous reductions in workforce, including a voluntary exit program for employees in its Platforms & Devices division announced in January. The company has been gradually downsizing across various teams as part of a broader reorganisation effort.
Google expands its ‘voluntary exits’ programme
Recently, Google said that it is expanding its “voluntary exit” programme, initially offered to employees in its Platforms & Devices division, to now include its People Operations (HR) team. This expansion allows eligible employees within HR to opt for severance packages if they choose to leave the company.
Google is extending this programme to its HR department as part of a broader effort to streamline operations and improve efficiency, as per 9to5google.
In an email to employees on Tuesday, Google’s Chief People Officer, Fiona Cicconi, detailed the broadened voluntary exit programme, which is open to US-based HR employees. The program is part of the company’s effort to streamline operations and improve efficiency within the People Operations team.