Alphabet is making staff reductions in Google’s cloud division, a segment that has seen significant expansion, according to sources familiar with the matter.
The company informed employees recently about the cuts, affecting roles in sales, consulting, go-to-market strategy, operations, and engineering.
Approximately 100 positions have been eliminated, as reported by insiders.
A Google spokesperson confirmed the layoffs, stating they are part of ongoing efforts to optimize the go-to-market organization.
The spokesperson emphasized the company’s commitment to investing in critical areas for long-term success while aligning with customer priorities.
Some affected employees were involved in organizing Google Cloud Next, held in mid-April.
Google has been implementing layoffs since early 2023, with employees expressing concerns about increased work demands and limited internal growth opportunities despite the company’s robust profitability.
In a recent development, Google reduced staff by at least 200 employees from its “Core” division, which includes key teams and engineering talent.
CEO Sundar Pichai mentioned plans for fewer layoffs in the second half of 2024.
Google Cloud has experienced substantial revenue growth, particularly in AI technology, with a 28% increase to $9.57 billion in the latest quarter.
Operating income also saw a significant rise, indicating Google’s success in generating profits after substantial investments to compete with Amazon Web Services and Microsoft Azure.
Despite strong financial performance, Google’s cloud unit, led by CEO Thomas Kurian, faces pressure to sustain growth amidst intensifying competition in the AI sector.
Source-CNBC
