Google places layoffs in the human resources and cloud sectors as accelerating AI investment: Report – Amphabet (NASDAQ:GOOG), Amazon.com (NASDAQ:AMZN)

Alphabet Inc.‘ GOOGL GOOG Subsidiaries Google New layoffs have been implemented in its HR and cloud divisions as part of ongoing cost-cutting efforts while increasing investment in AI infrastructure.

what happened: According to an internal memorandum of the internal head of the Human Resources Department, the company will provide voluntary acquisitions for the “People’s Operations” department in the United States starting from March Fiona Cicconi Viewed by CNBC. Middle and senior employees may receive 14-week salary severance payments and provide an additional week for annual service.

In addition, Google’s cloud division is facing layoffs that mainly affect operational support staff. Although the company says its largest cloud employees will remain in the U.S.

Google did not immediately respond to Benzinga’s request for comment.

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Why it matters: Revenue increased by 30% in the fourth quarter compared to the previous year, and remains a high-growth business unit, which benefited from AI products, and revenue in the cloud unit increased by 30%. Alphabet has been profiting from its cloud business while competing with market leaders Amazon Web Services and Microsoft Azure.

These reductions follow CFO’s comments Anat AshkenaziHe recently identified cost cuts as a top priority, while Google expanded spending on AI infrastructure in 2025. After reporting fourth-quarter revenue, he missed his February 3 expectations, Ashkenazi noted that Google “withdrew from the year with demand exceeding our availability of AI products”.

The latest cuts followed an announcement of an offer to Google’s “Platforms and Devices” unit, which has more than 25,000 full-time employees working on products such as Android, Chrome, Pipixel and Nest in January.

Price action: Alphabet Inc. Class A closed at $168.50, down 2.45%, and fell to $168.38 after get off work Thursday. According to Benzinga Pro, the C-Class fell 2.57% at the end of $170.21 and fell to $170.16 after get off work, according to Benzinga Pro.

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Disclaimer: The content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.