Google has reportedly laid off some employees in its cloud division, but the exact number isn’t publicly known. According to a report by Bloomberg, the company describes it as an ‘adjustment’ to align with customer needs and future opportunities, which suggests they might be restructuring or shifting priorities rather than conducting a large-scale layoff.
Google Cloud could be streamlining certain teams to focus on more profitable or high-growth areas. Notably, Google Cloud competes with Amazon Web Services (AWS) and Microsoft Azure. And Google is cutting jobs because its cloud business isn’t growing as fast as expected, and it’s spending heavily on artificial intelligence. The search giant might be adjusting its workforce to stay competitive.
The Mountain View-headquartered company has been gradually downsizing, unit by unit, since 2024. In December 2024, the company laid off 10% of its managerial staff, including managers, directors and vice presidents. Meanwhile, the latest cloud division cuts follow the voluntary exit program for employees in its Pixel and Android teams.
Interestingly, Google is not alone, major tech firms like Amazon, Meta, Microsoft, and Salesforce are also trimming their corporate staff. In fact, the layoffs at Google and other major tech companies reflect a broader trend in the industry – a shift in priorities toward AI and cost-cutting. According to estimates, around 13,732 employees have been laid off from 58 tech companies in 2025 to date.
Alphabet (Google’s parent company) recently reported lower-than-expected revenue from its cloud division, and it also signaled that it will spend more than anticipated in 2025. The surge in AI workloads has led to data center capacity constraints for Google Cloud.
In response, the company plans to increase capital spending by 43% to $75 billion this year, aiming to enhance infrastructure and meet the growing demand. In the meantime, if we look at the financials – as of 2024 – Google’s annual revenue was $348.16 billion, and Google Cloud’s revenue was $12 billion in the fourth quarter.
Talking about recent developments regarding Google Cloud, it has integrated SandboxAQ’s large quantitative models (LQMs) into its platform, enabling enterprises to process extensive numerical datasets and perform complex calculations. This collaboration marks the first time SandboxAQ’s models are accessible on a third-party platform.
