alphabet CNBC reports that the company is laying off employees from several teams in Google’s cloud division, one of its fastest-growing businesses.
The company notified employees last week about the cloud cuts, which include sales, consulting, “go-to-market” strategy, operations and engineering, according to an internal document seen by CNBC. At least 100 jobs are being eliminated, according to people familiar with the matter who spoke on condition of anonymity because they were not authorized to discuss the layoffs.
insider Previously reported Details regarding dismissal.
A Google spokesperson told CNBC the cuts were gradual across teams and aimed at improving alignment within the go-to-market organization.
“As we have said before, we continue to evolve our business to meet our customers’ priorities and the significant opportunities ahead,” the spokesperson said. “We remain committed to investing in areas that are critical to our business and will ensure its long-term success.”
Among those losing their jobs were people involved in the company’s annual Google Cloud Next event, held in mid-April, according to people familiar with the matter.
Google has been undergoing rolling job cuts since the start of 2023, even as the company reports record profits. Employees have complained that they are being asked to work with fewer resources, under tighter deadlines and have fewer opportunities for internal promotion.
Google cut at least 200 employees last month from its “core” organization, which includes key teams and engineering talent, and CEO Sundar Pichai told employees he plans to reduce layoffs in the second half of 2024.
Google Cloud, which houses much of the company’s AI technology, rose 28% year-over-year to $9.57 billion in the most recent quarter, beating expectations, and operating profit more than quadrupled to $900 million, suggesting that after years of pumping money into the business, Google is finally making a sizable profit. Amazon Web services and Microsoft Azure.
But the company’s cloud division, led by CEO Thomas Kurian, is under pressure to continue accelerating growth amid growing competition in the AI space.
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