Google is kicking off 2025 with another round of layoffs, this time hitting its “People Operations” (HR) and cloud divisions, CNBC reported this week. The Alphabet-owned tech giant is offering voluntary exit packages to U.S.-based HR staff and trimming roles in its cloud unit as part of internal reorganizations. The cuts reflect Google’s broader strategy to streamline operations and redirect resources toward its booming AI initiatives. Here’s what we know so far.
HR Buyouts: Voluntary Exits Start in March
In a Tuesday memo from HR chief Fiona Cicconi, viewed by CNBC, Google outlined a voluntary exit program for full-time U.S. employees in its People Operations division, set to begin in early March 2025. Mid- to senior-level staff (Levels 4 and 5) can opt for a severance package including 14 weeks of salary plus an additional week for every year of service. This follows earlier cost-cutting pledges from finance chief Anat Ashkenazi, who took the reins in 2024 and vowed to drive efficiency as Google ramps up AI infrastructure spending.
The move comes after Google’s Q4 2024 revenue missed Wall Street expectations, despite strong demand for its AI products. Ashkenazi noted on February 3 that the company “exited the year with more demand than we had available capacity,” signaling a need to reallocate resources.
Cloud Unit Cuts: Roles Shift Overseas
Separately, Google is reducing staff in its cloud division, primarily affecting operational support teams like sales operations, customer experience, and go-to-market units. Sources familiar with the matter, along with internal memos seen by CNBC, reveal that some roles are being relocated to India and Mexico City as part of a global consolidation effort. While the exact number of layoffs remains undisclosed, Google insists the cuts are “small in quantity” and that it’s still hiring for key sales and engineering roles in the cloud unit.
Google’s cloud business is a bright spot, with Q4 revenue surging 30% year-over-year, fueled by AI-driven growth. As it competes with Amazon Web Services and Microsoft Azure, the company is doubling down on efficiency to maintain profitability in this high-stakes market.
A Pattern of Restructuring in 2025
This isn’t Google’s first workforce shakeup this year. In January, the company offered buyouts to employees in its “Platforms and Devices” unit—home to over 25,000 workers on Android, Chrome, Pixel, and more—ahead of anticipated cuts. Now, with HR and cloud in the spotlight, Google spokesperson Brandon Asberry framed the changes as routine: “Our teams have continued to make changes to operate more efficiently, remove layers, and ensure they are set up for long-term success.” He added that the reorganizations align with Google’s “biggest priorities and the significant opportunities ahead,” particularly in AI.
Affected employees will receive support per local regulations, including time to apply for other roles within Google. The company stressed that the U.S. remains the largest hub for its cloud workforce, despite some role relocations.
What’s Driving Google’s Cuts—and What’s Next?
Google’s layoffs underscore a dual focus: cost discipline and AI dominance. With AI demand outpacing capacity, the company is reallocating resources to stay ahead in a competitive tech landscape. The cloud unit’s growth and HR’s streamlining suggest a leaner, more focused Google in 2025—but at the cost of jobs for some.
Will these cuts fuel Google’s AI ambitions, or are they a sign of deeper challenges? As the tech giant navigates a pivotal year, expect more updates on its workforce, cloud strategy, and AI innovations. Stay tuned.
