(Bloomberg) — Alphabet Inc.’s Google on Wednesday cut staffers in its cloud division, according to people familiar with the matter.
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Bloomberg could not determine the size of the layoffs or how many workers have been affected. The round of cuts impacted only a few teams, according to one of the people, who asked not to be identified because the round hasn’t been publicly announced.
The retrenchment comes in the wake of slower growth from Google’s cloud business, as well as massive spending aimed at supporting the tech giant’s AI ambitions. Earlier this month, Alphabet missed analysts’ revenue projections for cloud, and its guidance for 2025 capital expenditures also far exceeded expectations.
Google’s reductions in cloud follow previous, smaller moves by the company to downsize. In late January, as first reported by 9to5Google, the company announced a “voluntary exit program” for employees working in its Platforms and Devices unit — a group of staffers from its Pixel hardware and Android software division that were merged in 2024 into one team. Throughout 2024, Google made cuts that slowly rippled across the company as it went through a process of reorganization unit by unit.
The layoffs also come as the tech industry’s culling of its corporate workforces has become all but standard in a new year. Amazon.com Inc., Meta Platforms Inc., Salesforce Inc. and Microsoft Corp. are among those that have said they will cut underperforming employees or seek to hire cheaper international labor. The companies are under pressure to invest in AI technologies without risking profits.
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