View of the Google headquarters in Mountain View in California, April 16, 2024.
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Google CNBC said that this week he learned employees in his “people's operations” and cloud organizations that he plans to limit employees as part of internal reorganization.
The company will offer a voluntary starting program for American employees in full -time people in people's operations, the Google Man Department, starting from the notes issued on Tuesday by the head of HR Fiona Cicconi, which was viewed by CNBC.
The latest cuts appear after the head of finance Anat Ashkenazi said one of it The most important priorities It would be to increase cost reduction because Google extends expenses for AI infrastructure in 2025. After the company on February 3 reported revenues that omitted the expectations of Fourth quarterAshkenazi said that Google has strong demand for AI products and that “he left the year with more demand than available.”
As part of HR purchase, employees who have level 4 and level 5 can receive a briefing of 14 weeks of salary and one additional week for each full year of service, says the note. They are considered employees at the average to higher level.
Separately, the company also made cuts in several teams in its cloud unit, according to sources and separate internal notes. Some of these movements include transferring roles to other countries.
The company confirmed changes in CNBC, saying that reorganization is part of a normal course of activity.
“Our teams still make changes to act more efficiently, remove layers and ensure that they are configured for long -term success,” said Google Brandon Asberry spokesman in a statement. “This work is ongoing because we still invest in the greatest priorities of our company and, above all, significant possibilities.”
In January, Google directors stated that yes Offer purchase For employees with headquarters in the USA in the company “platforms and devices” of the company before expectations. This unit has over 25,000 full -time employees who work on Android, Chrome, Chromeo, Google Photos, Google One, Pixel, Fitbit and Nest.
The company said that it supports all affected employees, in accordance with local requirements, including time for exploration and applying to various roles on Google.
Cutting in the cloud
According to people familiar with the issue that will ask for the dismissals of the company owned by Alphabet companies that influenced the individual's sales activities, customer experience, internal agreement and supermarket teams that asked for them, because they are not allowed to speak public.
Cloud is one of the company's highly developing business units and the benefits of AI products. After the fourth quarter, the income of the cloud unit increased by 30% from the previous year. Alphabet brings profits from the cloud industry because it tries to keep up with market leaders Amazon Internet services i Microsoft Blue.
The roles of some of the affected employees are transferred to India and Mexico, according to people familiar with the case and internal correspondence viewed by CNBC.
The company confirmed that changes include consolidation or opening of roles in other parts of the USA and abroad. The greatest presence of employees for a cloud unit is still in the USA, and this does not change, the company added.
The number of layoffs is unclear, but the company said that it has a small amount and that the organization still employs critical roles of sales and engineering.
Bloomberg first Reported Cutting on Wednesday in the Cloud Google division.
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