The expected layoffs at Google are driven by cost-cutting measures even as the company doubles down on AI infrastructure spending.
Google is planning to lay off employees in its human resources division as part of internal restructuring of departments.
The tech giant issued a memo stating that its full-time employees––based in the United States of America––and work in the company’s “People’s Operations” department will become eligible for its voluntary exit programme, according to a report by CNBC.
Level-4 and Level-5 employees who opt for Google’s voluntary HR buyouts may receive severance pay for 14 weeks and one additional week for every full year of service, as per the report.
This comes just days after Bloomberg reported that Google is making cuts to its cloud division as well. Several jobs within Google’s cloud unit are being axed, with some roles reportedly being relocated to India and Mexico.
The number of layoffs within Google’s cloud division is still unclear. Google Cloud Platforms (GCP) is considered to be a high-growth unit of the company as it benefits from the AI boom.
During the fourth quarter of FY2024, GCP recorded a 30 per cent increase in revenue on an annual basis. Google has been drawing profit from its cloud business even as it tries to keep up with market leaders Amazon Web Services (AWS) and Microsoft Azure.
The expected layoffs at Google are driven by cost-cutting measures amid the big tech company’s plans to double down on its spending on AI infrastructure in FY2025.
“Our teams have continued to make changes to operate more efficiently, remove layers, and ensure they are set up for long term success. This work is ongoing as we continue to invest in our company’s biggest priorities and the significant opportunities ahead,” Google spokesperson Brandon Asberry was quoted as saying.
In January this year, Google announced a voluntary exit programme for its 25,000-strong ‘Platforms and Devices’ unit that covers teams working on Android, Pixel, Chrome, ChromeOS, Google Photos, Google One, Fitbit, and Nest.