Alphabet Inc.’s Google has made workforce reductions in its cloud division, affecting fewer than 100 employees in sales operations, according to sources familiar with the matter. The move, which has not been publicly announced, is aimed at freeing up resources to invest in artificial intelligence (AI) and other business priorities.

A Google spokesperson confirmed the decision, stating that the company continues to make strategic adjustments to align with customer needs and future opportunities. “As teams have been doing across the company, we’re making changes to continue to invest in areas that are critical to our business and ensure our long-term success,” the spokesperson said.

The layoffs come amid slowing growth in Google’s cloud business and increased spending to support the tech giant’s AI ambitions. Earlier this month, Alphabet missed analysts’ revenue projections for its cloud segment, while its 2025 capital expenditure guidance exceeded expectations. This financial pressure has pushed the company to streamline operations and optimize resources in high-priority areas.

Google’s decision to cut cloud division jobs follows a broader trend of restructuring within the company. In late January, the tech giant introduced a “voluntary exit program” for employees in its Platforms and Devices unit, which includes staff from the Pixel hardware and Android software divisions that were merged in 2024. Throughout last year, Google carried out a series of incremental layoffs across different teams as part of its ongoing organizational realignment.

The cloud division job cuts also reflect a wider shift in the tech industry, where major firms have been trimming corporate workforces amid the AI boom. Companies like Amazon, Meta, Salesforce, and Microsoft have either reduced underperforming roles or sought cost-effective alternatives, including hiring talent from lower-cost international markets. This balancing act allows tech giants to maintain aggressive investments in AI while safeguarding profit margins.

Despite the reductions, Google Cloud remains a critical pillar of the company’s growth strategy. As Alphabet’s search business matures, cloud services represent one of its best bets for future expansion. During Alphabet’s earnings call in February, Chief Financial Officer Anat Ashkenazi reiterated the company’s commitment to AI and cloud investments, stating that some headcount growth is expected in these key areas in 2025.

The ongoing shifts within Google highlight the evolving landscape of the tech industry, where companies are simultaneously optimizing costs and expanding AI-driven initiatives. As competition intensifies, Google’s cloud division is expected to play a pivotal role in the company’s long-term growth strategy, even as it undergoes periodic restructuring.