Google to fire more employees as company is spending heavily on AI

According to a report, Google has revealed an additional series of job reductions in its People Operations and Cloud divisions. This restructuring is part of the company’s continuous approach to more effectively distribute resources to its key AI projects. Here is all the information you should be aware of.

The tech giant allegedly disclosed intentions to provide a voluntary exit program for employees located in the US within its People Operations division, responsible for managing human resources activities. The initiative, scheduled to launch in early March, will enable mid-to-senior-level employees (Levels 4 and 5) to depart with severance offerings. These packages offer up to 14 weeks of pay, along with an extra week for every complete year of employment.

This choice is part of a broader initiative by Google’s financial leader, Anat Ashkenazi, aimed at cutting expenses even with the company’s considerable investment in AI infrastructure. Ashkenazi recently stated that achieving cost efficiency will be a major focus in the upcoming year, especially as the demand for AI-driven products keeps rising. Despite a fourth-quarter earnings report that fell short of expectations, the company is concentrating on leveraging the increasing demand for AI functionalities.

In addition to the reductions in People Operations, Google’s Cloud division has experienced a restructuring as well. The company has reduced the size of various teams, particularly in operations support, and is shifting certain positions to global locations such as India and Mexico City. These actions are part of a continuous initiative to enhance the global workforce and guarantee operational effectiveness, while Google strives to uphold its competitive advantage in the cloud industry.

The cloud unit, which remains one of Google’s most lucrative business segments, reportedly saw a 30 percent revenue increase in the fourth quarter. However, Google faces stiff competition from industry leaders Amazon Web Services (AWS) and Microsoft Azure, pushing the company to continually reassess its workforce strategy. While the company confirmed that the changes are part of its regular business operations, it reassured employees that the cuts would be minimal, with hiring continuing in key sales and engineering roles.

Google has also reportedly confirmed that it will support affected employees, offering them opportunities to apply for new roles within the company or explore buyout options in line with local employment laws. These latest cuts come on the heels of similar workforce reductions earlier this year, which affected other divisions within Google.