Google, a subsidiary of Alphabet Inc., is initiating new layoffs within its human resources and cloud divisions. This action is part of ongoing cost-cutting measures as the company intensifies its investment in artificial intelligence infrastructure.
According to an internal memo from HR chief Fiona Cicconi, viewed by CNBC, Google will offer voluntary buyouts to U.S.-based employees within its “People Operations” division, starting in March. Mid to senior-level employees may be eligible for severance packages, including 14 weeks’ salary plus an additional week’s salary for each year of service.
Separately, Google’s cloud unit is experiencing layoffs, primarily affecting operations support staff. While some roles are being shifted to India and Mexico City, the company maintains that its largest cloud employee presence will remain in the U.S.
These reductions follow comments from CFO Anat Ashkenazi, who recently emphasized cost-cutting as a top priority, especially as Google expands its AI infrastructure spending in 2025. After reporting fourth-quarter revenue that fell short of expectations on February 3, Ashkenazi noted that Google “exited the year with more demand than we had available capacity” for AI products.
These recent cuts are the latest in a series. In January, Google announced buyout offers to employees in its “Platforms and Devices” unit, which is home to over 25,000 full-time employees working on products such as Android, Chrome, Pixel, and Nest.
The cloud division, which saw 30% revenue growth in the fourth quarter compared to the previous year, continues to be a high-growth business unit. Alphabet has been generating profits from its cloud business while competing with industry leaders Amazon Web Services and Microsoft Azure.
