Google has laid off fewer than 100 employees from its cloud division, according to sources familiar with the matter. The job cuts, primarily affecting sales operations, are part of an effort to reallocate resources toward business growth and artificial intelligence. A Google spokesperson stated that the company is continuously adjusting its workforce to align with customer needs and future opportunities.

The layoffs come amid slowing growth in Google’s cloud business and significant investments in AI. Earlier this month, Alphabet reported lower-than-expected cloud revenue, and its projected capital expenditures for 2025 exceeded analysts' predictions.

This move follows a pattern of gradual downsizing at Google. In January, the company introduced a voluntary exit program for employees in its Platforms and Devices unit, a division that merged its Pixel hardware and Android software teams in 2024. Throughout the year, Google has implemented job cuts as part of an ongoing company-wide restructuring.

The broader tech industry is also experiencing widespread layoffs. Companies like Amazon, Meta, Microsoft, and Salesforce have been reducing staff, either by cutting underperforming employees or shifting toward lower-cost international labor. As competition in AI heats up, these firms are striving to invest heavily in new technologies while maintaining profitability. Despite the recent layoffs, Google Cloud remains a key focus for Alphabet. During the company's February earnings call, CFO Anat Ashkenazi indicated that Alphabet expects to increase hiring in 2025 for critical areas such as AI and cloud computing.

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