Google makes cuts to HR and cloud units

Google told staffers in its “People Operations” and cloud organizations this week that it plans to cut employees as part of internal reorganizations, CNBC has learned.

The company will offer a voluntary exit program to U.S.-based, full-time employees in People Operations, Google’s human relations division, starting in early March, according to a memo issued Tuesday by HR chief Fiona Cicconi that was viewed by CNBC. 

The latest cuts come after finance chief Anat Ashkenazi said one of her top priorities would be to drive more cost-cutting as Google expands its spending on AI infrastructure in 2025. After the company on Feb. 3 reported revenue that missed expectations for the fourth quarter, Ashkenazi said Google had strong demand for AI products and that it “exited the year with more demand than we had available capacity.”

As part of the HR buyouts, employees who are level 4 and level 5 may receive a severance of 14 weeks of salary and one additional week for every full year of service, the memo says. Those are considered mid- to senior-level employees.

Separately, the company also made cuts to several teams within its cloud unit, mostly affecting operations support staff, according to sources and separate internal memos. Some of those moves include moving roles to other countries.

The company confirmed the changes to CNBC, saying reorganizations are part of the normal course of business.

“Our teams have continued to make changes to operate more efficiently, remove layers, and ensure they are set up for long term success,” Google spokesperson Brandon Asberry said in a statement. “This work is ongoing as we continue to invest in our company’s biggest priorities and the significant opportunities ahead.”

In January, Google executives said they would offer buyouts to U.S.-based employees in the company’s “Platforms and Devices” unit ahead of expected cuts. That 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 time to explore and apply to different roles at Google.

The Alphabet-owned company’s cloud layoffs affected the unit’s sales operations, customer experience, internal deal and go-to-market teams, according to people familiar with the matter who asked not to be named because they are not permitted to speak publicly.

Cloud is one of the company’s high-growth business units and benefits from AI products. For the fourth quarter, the cloud unit’s revenue increased 30% from the year prior. Alphabet has been drawing profit from the cloud business as it tries to keep up with market leaders Amazon Web Services and Microsoft Azure.

Some affected employees’ roles are being relocated to India and Mexico City, according to people familiar with the matter and internal correspondence viewed by CNBC.

The company confirmed that the changes include consolidating or opening roles in other parts of the U.S and overseas. The largest employee presence for the cloud unit is still in the U.S., and that’s not changing, the company added.

The number of layoffs is unclear, 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 Google’s cloud division Wednesday.

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