Google Trims Cloud Division Amid AI Spending Push

Google has reportedly trimmed its cloud division and cut a small number of roles in its Threat Intelligence Group. The move comes as the company continues to invest heavily in artificial intelligence (AI) initiatives, with Alphabet citing the need to 'reinvest in growth areas' such as AI.

The affected employees are not yet known, but Google said it regularly evaluates internal structures to meet evolving customer demands and industry trends.

This is part of a larger trend among U.S. tech companies redirecting spending towards AI-driven efficiency initiatives, with Amazon, Meta, Coinbase, Block, and Cloudflare also implementing significant layoffs in recent months.

Alphabet's own workforce reduction efforts have been relatively smaller compared to its peers, but still significant, with 12,000 jobs cut in January 2023 as part of a post-pandemic slowdown. More targeted cuts have followed since then.