Google lays off employees in cloud division
What's the story
Google has confirmed a reduction in its cloud division workforce, affecting less than 100 employees mostly working in sales operations.
The move comes as part of the tech giant's effort to reallocate resources toward business development and artificial intelligence (AI).
"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," a company spokesperson said.
Business performance
Workforce reduction follows slower cloud business growth
The job cuts come after a period of sluggish growth in Google's cloud business and heavy investment in AI.
Earlier this month, Alphabet reported lower-than-expected revenue from its cloud division and projected capital expenditures for 2025 that exceeded expectations.
These developments point to a difficult financial picture for the tech giant's cloud business.
Past actions
Google's previous downsizing and reorganization efforts
The latest round of layoffs in the cloud division isn't a one-off.
Back in January, Google launched a "voluntary exit program" for employees in its Platforms and Devices unit, a team made up of Pixel hardware and Android software employees.
Across 2024, Google made cuts across departments as part of a company-wide reorganization process.
Industry trend
Tech industry's workforce reduction trend in 2025
The recent Google layoffs are part of a larger trend in the tech industry.
Companies like Amazon, Meta, Salesforce, and Microsoft have also announced plans to trim their workforces.
These firms are either targeting underperforming employees or looking to hire more affordable international labor.
This strategy is driven by the need to invest in AI technologies without compromising profitability.