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Google cuts staff in cloud division as AI investment grows

Alphabet Inc.’s Google has laid off fewer than 100 employees from its cloud division, mainly in sales operations.

A company spokesperson said that the layoffs are part of ongoing adjustments to focus on key business areas, especially AI, to meet customer demands and drive long-term growth.

These cuts follow Alphabet’s earnings report, which showed slow growth in its cloud business and significant AI investments.

The tech industry has seen an increase in layoffs as companies like Amazon, Meta, Salesforce, and Microsoft balance AI investments with profitability.

Google has made gradual structural changes across business units, including a voluntary exit program in January for its Pixel and Android teams.

Despite the layoffs, Google Cloud remains a key focus as the company pushes for AI-driven growth.

Recent Google developments

Timeline
26-Feb-2025 💻 Google launches free AI coding assistant for individuals
  • Google launches free Gemini Code Assist for users
  • AI tool boosts coding with chat and GitHub integration
25-Feb-2025 🎥 Google Drive users can now search video transcripts
  • Google Drive adds video transcript search feature
  • Transcripts display alongside videos in real-time
24-Feb-2025 📹 Google’s AI video model costs $30 per minute
  • Google’s Veo 2 costs $0.50 per second.
  • Competes with OpenAI’s Sora at $200/month.
22-Feb-2025 🚀 Google, Meta execs warn EU AI rules limit innovation
  • Google, Meta execs criticize EU’s AI regulations
  • Call for simpler rules to boost tech innovation

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