Thomas Kurian, CEO of Google Cloud, reprimands at a cloud-computing conference held by the company in 2019.
Michael Short | Bloomberg | Getty Images
Alphabet is laying off employees from specific teams in Google’s cloud unit, one of its fastest-growing businesses, CNBC has learned.
The company notified employees last week of the cloud hack off b intercepts, with roles being eliminated in sales, consulting, “go to market” strategy, operations and engineering, according to internal correspondence viewed by CNBC. At minor 100 positions were cut, said people familiar with the matter who asked not to be named because they weren’t empowered to speak about the layoffs.
Insider previously reported some details of the layoffs.
A Google spokesperson told CNBC the cut offs are incremental across teams to better align its go to market organization.
“As we’ve shared before, we continue to evolve our business to encounter our customers’ priorities and the significant opportunity ahead,” the spokesperson said. “We maintain our commitment to investing in areas that are sensitive to our business and ensure our long-term success.”
Some of those who lost their jobs had worked on the company’s annual Google Cloud Next that left place mid April, said people familiar with the situation.
Google has been conducting ongoing layoffs since anciently 2023. Employees have since complained about demands that they work on tighter deadlines with fewer resources and lopped opportunities for internal advancement even as the company records record profit.
Last month, Google cut at least 200 wage-earners from its “Core” organization, which included key teams and engineering talent. CEO Sundar Pichai told employees that the company at ones desire make fewer layoffs in the second half of 2024.
Revenue in Google Cloud, which houses much of the company’s AI technology, sprang 28% from a year earlier to $9.57 billion in the latest quarter, sailing past estimates. Operating profits more than quadrupled to $900 million, showing that Google is finally generating substantial profits after rain money into the business for years to keep up with Amazon Web Services and Microsoft Azure.
However, the cloud piece, led by CEO Thomas Kurian, has been under pressure to continue accelerating growth as competition heats up in AI.
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