Google has informed employees in its People Operations and cloud divisions about layoffs as part of internal restructuring efforts. The company is providing a voluntary exit program for full-time U.S. employees in its human resources sector, with offers beginning in early March, according to a memo from HR chief Fiona Cicconi.
Cost-Cutting Measures Amid AI Expansion
The decision follows CFO Anat Ashkenazi’s emphasis on further cost reductions as Google ramps up investments in AI infrastructure for 2025. After falling short of revenue expectations in the fourth quarter, Ashkenazi highlighted strong demand for AI products but noted capacity constraints.
Eligible HR employees at levels 4 and 5—considered mid- to senior-level roles—may receive 14 weeks of severance pay, plus an additional week for each year of service.
Cloud Division Faces Additional Downsizing
Beyond HR, Google’s Cloud division is cutting positions primarily in sales operations, customer experience, and go-to-market teams. Some roles are being relocated to India and Mexico City, according to internal documents. While the company maintains that the cloud unit remains a high-growth sector, these changes aim to optimize operational efficiency.
Despite the layoffs, Google continues hiring in critical sales and engineering roles, reinforcing its commitment to AI-driven cloud services.
Broader Restructuring Efforts
These reductions come shortly after Google offered voluntary buyouts to U.S. employees in its “Platforms and Devices” unit, which includes teams working on Android, Chrome, Pixel, and Fitbit. The company stated that all affected employees will receive support and opportunities to apply for other internal roles.
Industry Impact and Competitive Landscape
Cloud computing remains a key revenue driver for Google, with cloud revenue rising 30% last quarter. However, the company faces fierce competition from Amazon Web Services and Microsoft’s Azure. The layoffs and restructuring indicate a strategic shift toward efficiency and AI-powered innovations.
Google confirmed that the cloud organization continues hiring for priority areas while consolidating and relocating specific roles. However, the overall headcount impact remains undisclosed.
