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Google cuts staff to cut costs for AI investment

Google

Google has announced plans to cut its human resources and cloud technology divisions as part of an internal reorganization to reduce costs. About this Northern Macedonia CNBC.

According to a letter sent by HR chief Fiona Cicconi, the company has offered voluntary redundancy to its human resources staff. The programme will start in March 2025. Mid-level and senior-level employees can receive severance pay, which will amount to 14 weeks of salary plus an additional week for each full year of service.

The changes are part of a strategy announced by CFO Anat Ashkenazi, who said the company would focus on cutting costs and increasing investment in artificial intelligence in 2025. Ashkenazi said demand for AI products is far outstripping supply, despite the company's lower-than-expected profit.

At the same time, Google has cut staff in its cloud division, mostly in support operations. The laid-off employees worked in sales, user experience and other departments. Some roles will be moved to Mexico and India, but most employees will remain in the United States.

While the exact number of layoffs is not being disclosed, the company says the changes will only affect a small percentage of its employees, and that Google will continue to hire new employees in critical sales and development roles. A company spokesperson said the moves will help ensure the company's long-term success and efficiency in the future.

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