Google's Cloud Division Faces Layoffs

Alphabet is laying off employees from a few groups in Google’s cloud division, one of its fastest-growing businesses, CNBC has mentioned.

The company informed employees last week of the cloud cuts, with parts being eliminated in deals, consulting, the “go to market” technique, operations, and designing, and agreeing to inner correspondence viewed by CNBC. At least 100 positions were cut, said individuals familiar with the matter who inquired not to be named since they weren’t authorized to talk about the layoffs. An insider already detailed a few details of the layoffs.

Google's Cloud Division Cuts Jobs

A representative of Google's Cloud division told CNBC that the cuts are incremental over groups and are intended to better align the company's go-to-market organization.

“As we’ve shared before, we proceed to advance our trade to meet our customers’ needs and the critical opportunity ahead,” the spokesperson said. “We keep up our commitment to contributing in regions that are basic to our trade and guarantee our long-term success.”

Some of those who misplaced their occupations had worked on the company’s annual Google Cloud Next, which took place in mid-April, said individuals familiar with the situation.

Google has been conducting progress cutbacks since early 2023. Workers have since complained about demands that they work on tighter due dates with fewer assets and decreased openings for inner progression even as the company records record profit.

Last month, Google cut at least 200 candidates from its “Core” organization, which included key groups and designing abilities. CEO Sundar Pichai told workers that the company would make fewer cutbacks in the second half of 2024.

Revenue in the Google Cloud division, which houses much of the company’s AI innovation, bounced 28% from a year prior to $9.57 billion in the latest quarter, sailing past estimates. Operating income has more than quadrupled to $900 million, and it appears that Google is finally producing significant benefits after pouring cash into the trade for years to keep up with Amazon Web Services and Microsoft Azure. The layoffs in Google's Cloud Division come amidst intense competition in the cloud computing market.

Amidst the layoffs, Google remains committed to innovation and growth in its Cloud Division, albeit with a leaner workforce. However, the cloud unit, driven by CEO Thomas Kurian, has been under pressure to proceed with quickening development as competition warms up in AI.