Google lays off employees in HR and cloud units while doubling down on AI—Who’s next?

Google is making cuts in its workforce while shifting focus to AI. Employees in its People Operations (HR) and cloud divisions were informed this week about job reductions as part of internal restructuring, CNBC reports.

A memo from HR chief Fiona Cicconi outlined a voluntary exit program for U.S.-based, full-time employees in the People Operations division. The program, which begins in early March, offers 14 weeks of severance for mid-to-senior-level employees, plus an extra week for each year of service.

The news of the layoffs comes a year after the search giant let hundreds of employees go from its voice assistant, hardware, and engineering units. The co-founder of Fitbit also left in the major shakeup.

The layoffs also follow comments from Google’s finance chief, Anat Ashkenazi, who said trimming costs would be a priority as the company shifts more resources toward AI infrastructure in 2025. During Alphabet’s earnings call on February 3, she noted that demand for AI products exceeded available capacity, reinforcing Google’s focus on scaling its AI capabilities.

“The latest cuts come after finance chief Anat Ashkenazi said one of her top priorities would be to drive more cost-cutting as Google expands its spending on AI infrastructure in 2025,” CNBC reported.

Cloud Division Hit With Job Cuts and Role Relocations

Beyond HR, Google’s cloud unit has also been impacted. Employees in sales operations, customer experience, and go-to-market teams were affected. Some positions are being relocated to India and Mexico City, while others are being consolidated in different U.S. locations.

Google confirmed the reorganization, calling it part of ongoing efforts to streamline operations.

“Our teams have continued to make changes to operate more efficiently, remove layers, and ensure they are set up for long-term success,” Google spokesperson Brandon Asberry said in a statement.

While the number of layoffs remains unclear, the company insists it is still hiring for key sales and engineering roles within the cloud business.

AI Investments Drive Workforce Shifts

Google has been doubling down on AI, making major investments in AI-driven infrastructure while adjusting staffing in other areas. The cloud division, which saw a 30% revenue increase in Q4 2024, plays a significant role in the company’s AI push.

This isn’t the first time Google has restructured ahead of deeper AI expansion. In January, the company offered buyouts to employees in its Platforms and Devices unit, which oversees products like Android, Chrome, Google Photos, Pixel, and Nest.

For employees affected by the latest cuts, Google says it is providing support and opportunities to apply for other internal roles.

With AI taking center stage, workforce adjustments seem far from over. The bigger question: How many more jobs will be on the chopping block as Google realigns its priorities?

With this layoff, Google joins a growing list of tech companies trimming their workforces. Blue Origin also announced plans to lay off 10% of its workforce. According to Layoffs.FYI, a site tracking layoffs in the tech industry, 59 tech companies have laid off 13,802 employees so far this year.