Google is cutting its workforce while shifting its focus on AI. According to CNBC, employees in the People’s Management (HR) and cloud sector were notified this week of employment cuts as part of an internal restructuring.
HR Chief Fionasikconi’s memo outlined a voluntary exit program for US-based full-time employees of the People’s Operations division. The program will begin in early March and offer 14-week retirements to employees from mid-term to senior level, plus one week of annual service.
The layoff news comes a year after the search giant has allowed hundreds of employees to travel from voice assistants, hardware and engineering units. Fitbit co-founders have also remained in major shakeups.
The layoffs also follow a comment from Google’s finance chief Anat Ashkenazi. AnatAshkenazi said during ALPHABET’s revenue call in 2025, grooming costs will become a priority as the company shifts more resources to AI infrastructure to enhance its AI capabilities, as demand for AI products exceeds the capacity available and strengthens Google’s ability to focus on AI capabilities.
“The latest cuts come after Financial Director Anat Ashkenazi said it would be to promote more cost savings as Google expands its spending on AI infrastructure in 2025,” CNBC reported.
Cloud Division hits with job openings and role relocation
Beyond HR, Google’s cloud units were also affected. Sales operations, customer experiences, and employees of the market-going team were impacted. Some positions have been relocated to India and Mexico City, while others have been consolidated in various US locations.
Google has confirmed the reorganization and calls it part of its ongoing efforts to streamline operations.
“Our teams continue to make changes to operate more efficiently, remove layers and set them up for long-term success,” Google spokesman Brandon Asbury said in a statement.
The number of layoffs remains unknown, but the company claims it is still hiring for its major sales and engineering roles within its cloud business.
AI Investments drives shifting the workforce
Google has doubled AI and is making significant investments in AI-driven infrastructure while adjusting staffing in other areas. The cloud division, which saw revenue growth of 30% in the fourth quarter of 2024, plays a key role in the company’s AI push.
This is not the first time Google has been rebuilt prior to deeper AI expansions. In January, the company offered acquisitions to employees of platforms and device units that oversee products such as Android, Chrome, Google Photos, Pixel, and Nest.
For employees affected by the latest cuts, Google says it offers support and opportunities to apply for other internal roles.
Once AI appears on the centre stage, it appears that the workforce adjustments have not finished. Bigger question: How many more jobs will be registered in the chopping block as Google re-prioritizes?
This layoff will allow Google to join the growth list of tech companies that trim the workforce. Blue Origin has also announced plans to fire 10% of its workforce. 59 tech companies have fired 13,802 employees so far this year, according to LayOffs.fyi, a website that tracks layoffs in the tech industry.
Source link
