Google Announces U.S. Layoffs Amid Shift to AI Focus

MOUNTAIN VIEW, California — Google confirmed this week that it plans to lay off employees in its People Operations and cloud organizations as part of an internal reorganization. The move comes after Chief Financial Officer Anat Ashkenazi emphasized cost-cutting measures following disappointing revenue reports for the fourth quarter.

The layoffs will include a voluntary exit program for U.S.-based full-time employees in the People Operations division, starting in early March, according to a memo from HR Chief Fiona Cicconi that was obtained by CNBC. Employees classified at levels 4 and 5 are eligible for severance of 14 weeks of salary plus an additional week for each year of service.

In addition to the HR cuts, Google is also reducing staff from several teams within its cloud unit, primarily affecting operations support roles. Some of these jobs are being relocated to countries such as India and Mexico. However, Google has stated that the total number of layoffs is small, and the organization is still hiring for critical sales and engineering roles.

“Our teams have continued to make changes to operate more efficiently, remove layers, and ensure they are set up for long-term success,” said Google spokesperson Brandon Asberry in a statement. The company emphasized that these reorganizations are part of the normal course of business.

These layoffs come as Google continues to invest heavily in artificial intelligence infrastructure, with Ashkenazi noting that the company exits the year with more demand than its existing capacity can handle. The cloud segment, a crucial growth area for Google, has been tasked with keeping up with competitors such as Amazon Web Services and Microsoft Azure.

Google had previously indicated in January that would offer buyouts to U.S.-based employees in its Platforms and Devices unit, which encompasses over 25,000 employees working on products such as Android, Chrome, and Pixel. This unit has also faced scrutiny as part of broader industry layoffs.

While Google remains a leader in technology, the recent layoffs position it in a continual state of restructuring as it adjusts to market demands. The company’s cloud revenue increased, but not enough to meet the expectations of analysts following fourth-quarter reports.

Industry insiders are watching closely, as the workforce reductions indicate a trend among tech companies to prioritize efficiency and adaptability amid evolving market conditions. In light of Google’s focus on AI, the tech titan is attempting to streamline its operations to enhance productivity, particularly in departments flagged for potential growth.