Google cuts jobs to prioritise AI and cost optimisation
Google is streamlining its operations by reducing staff in its cloud and human resources divisions. This strategic shift prioritises artificial intelligence (AI) development and cost optimisation initiatives.
The company announced a voluntary severance programme for full-time employees in its people operations division in the United States, offering a severance package including salary continuation and additional weeks based on seniority. At the same time, layoffs within the cloud division primarily affected sales departments, customer experience and go-to-market teams. Some functions are being transferred to India and Mexico as part of this restructuring.
Although the exact number of layoffs has not been disclosed, Google confirms that hiring for crucial sales and technical positions will continue. This decision echoes comments made by Anat Ashkenazi, Alphabet’s CFO, who emphasised cost efficiency while increasing investment in AI infrastructure. Despite failing to meet revenue targets in the previous quarter, she emphasised the growing demand for AI products and the need to manage spending effectively.
Google Cloud continues to show robust growth, with revenue up 30% year-on-year. The company remains competitive in the cloud computing market alongside Amazon Web Services and Microsoft Azure, firmly positioning AI as a central investment point. The impact of these layoffs on Google’s Asia-Pacific headquarters in Singapore is unknown at this time.
Google sees these workforce adjustments as routine measures to improve long-term efficiency and success. This trend mirrors similar workforce reductions in the broader tech industry, with major players such as Amazon, Meta and Microsoft implementing similar strategies to balance AI investments with financial stability.
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