One of Alphabet's fastest-growing businesses, Google Cloud, is reportedly laying off staff from several departments. The division houses the tech giant's products and services related to artificial intelligence (AI).
At Least 100 Google Cloud Positions Axed
The engineering, sales, consulting, and "go to market" strategy departments are among those who will be let off, according to internal memos obtained by CNBC. The insiders who talked to the media outlet said at least 100 jobs were eliminated. The layoffs were announced to the staff last week.
Some of the laid-off workers participated in the annual Google Cloud Next event, which was held in mid-April.
Google Cloud, the home of much of the company's artificial intelligence (AI) technologies, saw revenue soar to $9.57 billion in the most recent quarter. It surpassed projections with a 28% year-over-year increase.
After years of investing heavily to compete with Amazon Web Services and Microsoft Azure, Google now sees big returns as operating income more than doubled to $900 million.
Nevertheless, the most recent layoff suggests that these positive results are insufficient.
Persistent Layoffs at Google
Google has been continuously laying off employees since the beginning of 2023. In January, The Verge reported that CEO Sundar Pichai warned workers of more job cuts this year.
In late April, Google laid off staff from teams working on Flutter, Dart, and Python. These layoffs occurred just before May's annual developer conference, I/O.
According to CNBC, at least 200 people were laid off from the "Core" division, which includes important teams and technical skills, just last month.
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