According to CNBC, Google has begun reducing staff in certain departments, including the human resources department and the cloud division. These measures are part of an internal reorganization aimed at reducing costs.
Head of the HR Department Fiona Cicconi informed employees about the possibility of voluntary resignation. The program will start in early March 2025. Middle and senior employees who agree to resign will be offered severance pay: 14 weeks plus an additional week for each full year of service with the company.
The strategic priority is to invest in AI
These cuts come amid a statement by Google CFO Anat Ashkenazi that in 2025, the company will focus its efforts on cost optimization, which will allow increasing investments in artificial intelligence. During the announcement of the financial results, Ashkenazi emphasized that despite the lower-than-expected profit, the demand for AI products significantly outstripped the supply.
Reductions in the cloud division: role transfers and optimization
Along with the cuts in the HR department, Google is also optimizing the staff in its cloud division. The changes mainly affected employees who provided support for operations. In particular, some of the sales staff, customer service, and other departments were laid off. Some functions will be transferred to the company’s offices in Mexico and India. Still, most employees will remain in the US.
Limited scale of layoffs and continued hiring
Although the number of employees laid off has not been disclosed, Google emphasizes that the cuts affect only a small portion of its workforce. The company also confirms that it will continue to hire new employees for key positions in sales and development.