Tech Giant Fire Nearly 100 Employees From Cloud Division, Says Report

Google Layoffs: Alphabet, Google’s parent company, is reportedly laying off multiple employees across several teams within Google’s cloud division, which is one of its fastest-growing sectors. Last week, the company informed its employees about the cloud-related reductions, as per internal communications seen by CNBC. Roles in sales, consulting, “go-to-market” strategy, operations, and engineering are among those being eliminated. Individuals familiar with the situation told the publication that at least 100 positions were affected by these recent job cuts.

A Google spokesperson informed CNBC that the reductions are incremental and aimed at optimising alignment within the go-to-market organisation across various teams. “As we’ve shared before, we continue to evolve our business to meet our customers’ priorities and the significant opportunity ahead. We maintain our commitment to investing in areas that are critical to our business and ensure our long-term success,” the spokesperson said in the statement.

Individuals familiar with the matter told the publication that some of those affected by the layoffs had been involved in planning and executing Google’s annual event, Google Cloud Next, which took place in mid-April.

Since early 2023, Google has been continuously implementing layoffs. Employees have expressed grievances regarding increased pressure to meet tighter deadlines with fewer resources and reduced prospects for internal advancement, and all this despite the company reporting record profits.

In the previous month, Google fired at least 200 employees from its “Core teams”, impacting key departments and engineering talent. CEO Sundar Pichai assured employees that the company plans to enact fewer layoffs in the latter half of 2024.

In the latest quarter, revenue within Google Cloud, where a significant portion of the company’s AI technology resides, surged by 28 per cent compared to the previous year, reaching $9.57 billion, surpassing initial estimations. Operating income experienced an exponential increase, more than quadrupling to $900 million. These figures indicate that Google is finally beginning to reap substantial profits after years of hefty investment in the business to remain competitive with Amazon Web Services and Microsoft Azure.

Also Read: Microsoft Layoffs: Firm Fires Nearly 1,500 Employees From Different Departments