Google is cutting staff in its Cloud unit to boost investment in artificial intelligence

01 March, 2025, 11:00 229
Google is cutting staff in its Cloud unit to boost investment in artificial intelligence

Alphabet has made job cuts in its Google Cloud unit. According to Bloomberg, the layoffs affected fewer than 100 employees working in sales operations. 

The move is focused on freeing up resources to invest in key business areas, including artificial intelligence technologies.

A Google spokesperson stated that the company continues to adapt its structure to meet customer needs and capitalize on new opportunities.

Earlier this month, Alphabet failed to meet analysts' expectations for cloud revenue, and its projected 2025 investments significantly exceeded market expectations.

This is not the first recent cuts in Google's workforce. At the end of January, the company announced a "voluntary exit program" for employees of the Platforms and Devices unit, which combines the Pixel and Android teams. Throughout 2024, the company has been gradually restructuring in various areas.

The "optimization" trend has spread like a wildfire through the tech sector. Amazon, Meta, Salesforce, and Microsoft have already announced their intentions to optimize costs by laying off employees or outsourcing jobs to cheaper international labor. At the same time, the tech giants are trying to maintain profitability by actively investing in artificial intelligence.

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