Google has informed employees of its human resources and cloud technology departments about plans to cut staff as part of an internal reorganization aimed at reducing costs. At the same time, the company plans to increase investments in artificial intelligence, informs CNBC.
According to a letter sent by head of HR Fiona Cicconi, the company has offered employees in the human resources department the option of voluntary redundancy, and the corresponding program will start in early March 2025. Mid- and senior-level employees can receive severance pay equal to 14 weeks’ salary plus an additional week for each full year of service.
A new wave of cuts at Google began after CFO Anat Ashkenazi announced that in 2025 the company would focus on cost optimization to increase investments in artificial intelligence. During the financial report, Ashkenazi noted that although the profit turned out to be less than expected, the demand for AI products significantly exceeds the supply.
In addition, the reductions affected the cloud department of the company, mainly employees responsible for operational support. The layoffs affected sales, customer experience and other employees. Some positions will be transferred to Mexico and India, but the majority of employees will remain in the US.
The total number of those fired has not been disclosed. At the same time, Google says that the cuts affect only a small percentage of employees and that the company will continue to recruit new professionals for critical positions in the sales and development departments.
