Google Restructures Its People Operations And Cloud Department As Part of The Company's Internal Reorganisation

Google is laying off staff in its "People Operations" and cloud departments as part of the company's internal reorganisation, according to a report by CNBC.

Full time employees based in the United States will offer a voluntary exit program. Level-4 and Level-5 employees who opt for the buyout may receive severance pay, including 14 weeks of base salary plus an additional week for every full year of service.

The latest cut comes after finance chief Anat Ashkenazi revealed that one of her top priorities would be to streamline the company's budget as Google expands its spending on AI infrastructure in 2025.

Separately, the company had also made cuts to several teams within its cloud unit, mostly affecting operations support staff, according to sources and separate internal memos. Some of those moves include moving roles to other countries.

In an interview with CNBC, Google spokesperson Brandon Asberry expressed that reorganisation is part of the normal course of business. He added

"Our teams have continued to make changes to operate more efficiently, remove layers, and ensure they are set up for long term success"

The company said that it is supporting all its affected employees, in line with local requirements, including time to explore and apply to different roles in Google.

Cloud is one of the company's high growth business units and benefits from AI products. During the fourth quarter, the cloud unit's revenue increased 305% from the year before.

Alphabet, Google's mother company has also been drawing profit from the cloud business as it tries to keep up with market leaders like Amazon Web Services adn Microsoft Azure.

There are also a small portion of the employees who are relocated to India and Mexico City, according to insider sources who are familiar with the matter.

As part of its restructuring, Google would also be consolidating or opening roles in other parts of the U.S and overseas. The largest employee presence for the cloud unit is still in the U.S, and that is not changing the company reassured.

While the number of layoffs is unclear, the company claims that the number is small in quantity and that the organisation is still continuing to hire for critical sales and engineering roles.