Наталя Хандусенко Work 27 February 2025, 10:53

Google cuts staff in cloud division to free up resources for business and AI investments

On Wednesday, Alphabet's Google laid off nearly 100 employees in its cloud division.

This is reported by Bloomberg, citing its own sources.

The cuts affected mainly sales employees and were intended to free up resources for investment in business and artificial intelligence.

A Google spokesperson said in a statement that the company continues to make adjustments to "meet the needs of our customers and take advantage of the significant opportunities that lie ahead."

“Like teams across the company, we are making changes to continue to invest in areas that are critical to our business and ensure our long-term success,” the press service said.

The cuts come amid slowing growth in Google's cloud business, as well as significant spending to support the tech giant's ambitions in artificial intelligence.

Earlier this month, Alphabet missed analysts' forecasts for cloud revenue, and its 2025 capital expenditure forecasts also significantly exceeded expectations.

In January, the company offered “voluntary severance” to Android, Chrome, and Pixel employees. This came a little less than a year after Google merged the Android, Pixel hardware, and Chrome teams into a single Platforms & Devices division.

A month earlier, it became known about the reduction of 10% of managers, directors, and vice presidents, allegedly due to the threat from OpenAI.

Is there life after Google? Eight laid-off employees talk about how they were laid off, what they did next, and what advice they have for others.