Google’s parent company, Alphabet, has announced another round of layoffs across its cloud computing and human resources units. The cuts are part of an internal reorganization aimed at raising funds for the company’s artificial intelligence (AI) infrastructure.
The affected positions will primarily impact support staff and roles outside the US, with impacted employees receiving 14 weeks’ salary in severance and additional weeks based on years of service. Cloud computing remains a high-growth area, benefiting from AI integration across various products.
Alphabet previously announced layoffs and buyout packages for its Platforms and Devices unit, which employs over 25,000 staff working on Android, Chrome, Pixel, Fitbit, and Nest devices. Since 2022, the company has cut over 12,000 jobs during a hiring spree that followed the Covid-19 pandemic.
Despite the recent layoffs, Alphabet’s stock has seen significant growth, rising 22% in the last year. Wall Street analysts have given the GOOGL stock a Moderate Buy rating, with 27 Buy and 10 Hold recommendations in the last three months. The average price target is $215.85, implying a potential 28.41% upside.
Source: https://www.tipranks.com/news/alphabet-googl-announces-layoffs-in-its-cloud-unit