Google cuts at least 100 jobs across fast-growing cloud unit, sources say

According to CNBC, Alphabet is laying off employees from its rapidly expanding cloud unit.

According to internal correspondence viewed by CNBC, the company notified employees last week of the cloud cuts, which included roles in sales, consulting, “go-to-market” strategy, operations, and engineering. At least 100 positions were eliminated, according to people familiar with the situation who asked not to be identified because they were not authorized to speak about the layoffs.

Insider previously revealed some details about the layoffs.

A Google spokesperson told CNBC that the cuts are being made incrementally across teams to better align the company’s go-to-market organization.

“As we’ve shared before, we continue to evolve our business to meet our customers’ priorities and the significant opportunity ahead,” said a spokesperson. “We maintain our commitment to investing in areas that are critical to our business and ensure our long-term success.”

According to sources familiar with the situation, some of those who lost their jobs worked on the company’s annual Google Cloud Next event in mid-April.

Google has been conducting ongoing layoffs since early 2023. Employees have since complained about demands to work on tighter deadlines with fewer resources and fewer opportunities for internal advancement, despite the company’s record profits.

Last month, Google laid off at least 200 employees from its “Core” organization, which included key teams and engineering talent. CEO Sundar Pichai informed employees that the company would have fewer layoffs in the second half of 2024.

Revenue for Google Cloud, which houses much of the company’s artificial intelligence technology, increased 28% year on year to $9.57 billion in the latest quarter, exceeding expectations. After years of investing in the business to compete with Amazon Web Services and Microsoft Azure, Google’s operating income has quadrupled to $900 million, indicating significant profitability.

However, the cloud unit, led by CEO Thomas Kurian, has been under pressure to maintain its rapid growth as AI competition heats up.