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A view of the Google headquarters in Mountain View, California, on April 16, 2024.
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Google He told employees in their “people operations” and cloud organizations this week that plans to reduce employees as part of internal reorganizations, as CNBC has learned.
The company will offer a full -time voluntary starting program based in the US.
The last cuts occur after the Chief of Finance Anat Ashkenazi said one of hers Main priorities It would be more costs as Google expands its AI infrastructure spending in 2025. After the company on February 3 reported income that lost expectations for the fourth quarterAshkenazi said that Google had a strong demand for AI products and that “it left the year with more demand for available capacity.”
As part of human resources purchases, employees who are at level 4 and level 5 can receive compensation of 14 weeks of salary and an additional week for each full year of service, says the memorandum. Those are considered medium to higher employees.
Separately, the company also made cuts to several equipment within its cloud unit, which mainly affects operations support staff, according to separate internal sources and notes. Some of these movements include movement roles to other countries.
The company confirmed the changes in CNBC, saying that reorganizations are part of the normal course of business.
“Our teams have continued to make changes to operate more efficiently, eliminate layers and make sure they are configured for long -term success,” said Google Brandon Asberry spokesman in a statement. “This work is in progress as we continue to invest in the main priorities of our company and on significant opportunities ahead.”
In January, Google executives said it would Offer purchases to US employees in the company of “platforms and devices” of the company before the expected cuts. This unit houses more than 25,000 full -time employees who work on Android, Chrome, Chromeos, Google Photos, Google One, Pixel, Fitbit and Nest.
The company said it is supporting all affected employees, in line with local requirements, including the time to explore and apply to different roles in Google.
Cloud cuts
The cloud layoffs of the company owned by the alphabet affected the sales operations of the unit, the customer experience, the internal agreement and the market teams, according to people familiar with the matter they asked not to be named because they are not allowed to speak publicly.
Cloud is one of the company’s high growth business units and benefits from AI products. For the fourth quarter, the income of the cloud unit increased 30% of the previous year. Alphabet has been obtaining cloud business profits, since he tries to keep up with market leaders Amazon Web services and Microsoft Azure.
The roles of some affected employees are relocating in India and Mexico City, according to people familiar with the matter and internal correspondence seen by CNBC.
The company confirmed that the changes include consolidating or opening roles in other parts of the US and abroad. The presence of the largest employees for the cloud unit is still in the US., And that is not changing, the company added.
The number of layoffs is not clear, but the company said it is small in quantity and that the organization continues to hire for critical sales and engineering roles.
Bloomberg first reported The cuts to the Google cloud division on Wednesday.
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