Google Announces Layoffs HR and Cloud Divisions Amid Cost-Saving Strategy
As Google continues optimising costs and restructuring operations, the company has announced new layoffs in its People Operations (HR) and Cloud divisions. The move is part of a broader effort to streamline business operations while increasing investment in AI infrastructure. Google informed its People Operations division employees that it will offer a voluntary exit program to U.S.-based full-time employees starting in early March. The initiative targets mid-to-senior level employees (Level 4 and Level 5), offering a severance package of 14 weeks’ salary plus one additional week for each year of service.
The layoffs align with Google’s cost-reduction priorities, as outlined by Finance Chief Anat Ashkenazi, who recently emphasized the company’s need to redirect spending toward AI development. Google’s recent Q4 earnings report highlighted strong demand for AI products but noted capacity limitations that require strategic investments.
Cloud Division Layoffs and Relocations
In addition to HR buyouts, several teams within Google Cloud have also been affected by internal restructuring. The sales operations, customer experience, internal deal, and go-to-market teams are among those impacted. Some of these roles are being relocated to India and Mexico City as part of the company’s effort to restructure global operations. Google confirmed the cloud division cuts, stating that reorganizations are a routine part of business operations. However, the company emphasized that the largest employee presence for its cloud business remains in the U.S. and that it continues hiring for critical sales and engineering positions.
Despite these layoffs, Google Cloud remains a high-growth unit, generating a 30% revenue increase year-over-year in Q4 2024. The company continues to compete with Amazon Web Services (AWS) and Microsoft Azure, leveraging AI-driven cloud solutions to expand its market share.
Google’s Strategy Moving Forward
This round of layoffs follows Google’s January announcement of workforce reductions in its Platforms and Devices unit, which includes Android, Chrome, Google Photos, Pixel, Fitbit, and Nest. The company maintains that streamlining operations is essential for long-term success as it prepares for massive AI-driven growth in the coming years. While the exact number of layoffs remains unclear, Google reassured that affected employees will receive support and opportunities to apply for other roles within the company.
Industry Reactions and Future Outlook
As tech giants continue to restructure their workforces, cost-cutting measures across major AI and cloud businesses are becoming more frequent. With companies like Meta, Amazon, and Microsoft also implementing similar workforce adjustments, the industry is shifting its focus to AI infrastructure and cloud computing dominance.
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