By News Karnataka Editorial Team
Copyright newskarnataka
Google has laid off more than 100 employees in its Cloud division this week, with the cuts mainly affecting staff in design and user experience research roles, according to reports by CNBC and Business Insider. The layoffs, which were communicated to employees through emails on Monday, are part of the company’s ongoing restructuring efforts in 2025.
The reductions impacted quantitative user experience research teams as well as platform and service experience teams—groups that play a crucial role in understanding customer behaviour through data and surveys to inform product development.
Roles cut despite strong Cloud revenue
Internal documents cited by CNBC indicated that Google has downsized some Cloud unit design teams by up to 50 percent, with many affected positions located in the United States. Some employees have been given until early December to find new roles within the company.
The human cost of the layoffs is also significant. One former employee shared on LinkedIn that they were on an O-1 visa, meaning they must secure another position within 60 days or leave the United States.
Despite the layoffs, Google Cloud’s financial performance remains robust. In Q2 2025, the division reported $13.6 billion in revenue, a 32 percent year-on-year growth, and an operating income of $2.8 billion. Google Cloud CEO Thomas Kurian recently told investors that the unit holds a $106 billion backlog, with over half expected to convert into revenue within two years.
Efficiency and margin focus
Kurian emphasised that while revenue growth remains strong, the company is prioritising operating discipline to improve margins. The cuts, he said, align with Google’s broader focus on cost efficiency and resource optimisation.
Google CEO Sundar Pichai has consistently stressed the need for the company to “be more efficient as we scale up so we don’t solve everything with headcount,” particularly as Google accelerates investment in artificial intelligence infrastructure.
Broader restructuring at Google
This move is part of a larger wave of restructuring at Google in 2025. The company has:
Offered voluntary exit packages for US-based employees across divisions such as human resources, hardware, search, ads, marketing, finance, and commerce.
Eliminated more than one-third of managers overseeing small teams since January.
While these measures reduce headcount, Google continues to expand in high-growth areas like AI, signalling a shift in focus from labour-heavy structures to automation, cloud infrastructure, and machine learning services.
The latest cuts underscore Google’s strategic balancing act—maintaining record-breaking growth in its Cloud division while trimming staff to boost efficiency. For affected employees, the layoffs highlight the uncertainty of working in the tech sector, where even high-performing units are not immune to restructuring. For Google, however, the message is clear: profitability and operational discipline remain as important as growth.
