Google Cloud Retrenches Nearly 100 Staff

Google has cut about 100 positions in its cloud division, primarily affecting sales operations, as part of a strategic shift to reallocate resources toward AI and business growth, according to sources familiar with the matter.

A Google spokesperson stated that the company continues to adjust its workforce to align with customer needs and future opportunities.

The spokesperson said:

“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 move follows slower growth in Google’s cloud business and significant AI-related investments.

Earlier this month, Alphabet fell short of analysts' cloud revenue projections, while its 2025 capital expenditure forecast exceeded expectations, highlighting the company’s evolving priorities.

Google Cloud Layoffs Not the First

Google’s latest cloud workforce reductions follow a series of restructuring efforts across the company.

In January, it introduced a “voluntary exit programme” for employees in its Platforms and Devices unit, which merged its Pixel hardware and Android software teams in 2024.

Throughout the year, Google has made gradual workforce cuts as part of a broader reorganisation.

The cloud layoffs reflect a broader trend in the tech industry, where companies like Amazon, Meta, Salesforce, and Microsoft are trimming corporate roles or shifting to lower-cost international labour.

With mounting pressure to invest in AI without jeopardising profits, Google continues to prioritise its cloud division as a key growth driver.

During its February earnings call, Alphabet CFO Anat Ashkenazi reaffirmed that the company expects "some headcount growth in 2025 in key investment areas such as AI and cloud."