Google Cloud Division Faces Layoffs Amid Rapid Growth

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Alphabet Fires 100 Employees From Google’s Cloud Division

Alphabet’s Google Cloud division has reportedly laid off approximately 100 employees from various departments, including engineering, sales, consulting, and go-to-market strategy. This move comes as a surprise to many, especially considering Google Cloud’s significant growth and revenue increase in recent years.

The layoffs were announced through internal memos obtained by CNBC, with affected employees notified last week. Some of these individuals had even participated in Google Cloud’s annual event, Cloud Next, which took place in mid-April.

Despite Google Cloud’s revenue reaching an impressive $9.57 billion in the most recent quarter, exceeding projections with a 28% year-over-year increase, the company has still decided to downsize its workforce in certain departments.

This recent development follows previous layoffs at Google earlier this year, which saw staff reductions in teams working on various projects like Flutter, Dart, and Python. In January, CEO Sundar Pichai had already warned of potential job cuts in 2023, and these actions seem to be part of that plan.

The layoffs are not isolated incidents; they are becoming a pattern at Google. Just last month, at least 200 employees were let go from the Core division, which included crucial teams and technical skills necessary for Google’s operations.

Although Google Cloud has been investing heavily to compete with major cloud service providers like Amazon Web Services and Microsoft Azure, these recent layoffs indicate that the company may be reassessing its strategies and possibly restructuring its workforce to align with its business goals.

It remains to be seen how these layoffs will impact Google’s overall operations and whether they will have any long-term effects on the company’s competitiveness in the cloud computing market.

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Advait Gupta
Advait Gupta
Advait is our expert writer and manager for the Artificial Intelligence category. His passion for AI research and its advancements drives him to deliver in-depth articles that explore the frontiers of this rapidly evolving field. Advait's articles delve into the latest breakthroughs, trends, and ethical considerations, keeping readers at the forefront of AI knowledge.

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