Google’s cloud unit is undergoing employee layoffs in key areas such as sales, consulting, strategy, operations, and engineering, as reported by insiders. Approximately 100 roles have been cut in an effort to streamline the organization’s go-to-market strategy. The layoffs come as part of Alphabet’s ongoing efforts to realign its business operations with customer needs and optimize long-term success, according to a Google spokesperson.

Employees affected by the recent cuts were involved in projects like Google Cloud Next, indicating a shift in the company’s workforce structure. Complaints from employees about increased work pressure, limited growth opportunities, and tighter deadlines have been circulating since early 2023, despite Google’s robust financial performance.

Earlier this year, Google downsized its “Core” organization by letting go of 200 employees, with CEO Sundar Pichai assuring a slowdown in layoffs for the latter half of 2024. The company’s revenue in the cloud division has shown promising growth, with a 28% surge to $9.57 billion in the latest quarter. Operating income also saw a significant rise, signifying Google’s progress towards profitability after years of heavy investment to compete with industry giants like Amazon Web Services and Microsoft Azure.

Under the leadership of CEO Thomas Kurian, Google Cloud continues to face competitive pressure in the rapidly evolving AI landscape. The company remains committed to its AI technology advancements, despite recent workforce restructuring initiatives.