NEW YORK: Google has laid off around 200 employees from its global sales and partnerships division, in a move reflecting a broader shift across the tech industry towards prioritising artificial intelligence (AI) and data centre investments while cutting costs elsewhere.
This move is part of a larger trend in the tech industry, where companies are shifting focus toward investments in data centres and artificial intelligence (AI) while cutting costs in other areas, The Information reported on Wednesday.
In a statement to Reuters, Google confirmed that these job cuts are part of “small-scale changes” designed to improve collaboration and enhance the company’s ability to serve customers more quickly and effectively.
The layoffs come after previous reports that Google had also reduced staff in its platforms and devices unit, which oversees products like Android, Pixel phones, and Chrome.
This job reduction follows Google’s parent company Alphabet’s decision to cut 12,000 jobs in January 2023, amounting to 6% of its global workforce. As of December 2024, Google employed 183,323 people.
The broader tech sector has also seen similar downsizing efforts. Meta, Facebook’s parent company, laid off 5% of its lowest-performing employees in January, while also ramping up hiring in machine learning.
Microsoft reduced its Xbox division workforce by 650 jobs in September, and Amazon made cuts across several units, including communications. Additionally, Apple reduced nearly 100 positions in its digital services group last year.
The ongoing wave of job cuts reflects the changing priorities of major tech companies amid the industry’s evolving landscape.
