Is big tech seeing a cloud cooldown? Both Microsoft and Google confirm layoffs in their respective cloud computing divisions.
Microsoft and Google are laying off hundreds of employees each across Azure and Google Cloud, respectively, according to separate reports published this week.
Google is reportedly making cuts across the company so that it can better prioritize its AI push, CNBC reports. At least 100 employees across Cloud’s sales, engineering, consulting, and strategy teams lost their jobs and were notified last week.
Last year, a CNBC report suggested cloud computing could be seeing some pullback more broadly. But Google Cloud remains one of the tech giant’s biggest growth areas, seeing revenue spike 28% compared to a year ago. If Google Cloud’s layoffs are at all connected to its AI plans, it would be an unfortunate yet ironic twist considering Google recently claimed “there is no straight line” between AI development and job loss.
