Google has once again reduced its workforce, cutting over 100 jobs in its cloud division. These layoffs, primarily affecting design-oriented teams, come as the tech giant intensifies its focus on artificial intelligence and seeks to streamline expenditures in other areas. According to a report by CNBC, the job cuts impacted groups such as quantitative user experience research and platform and service experience—teams that gather user feedback, conduct surveys, and analyze product usage to inform engineers and designers. In some instances, entire teams have seen their numbers halved. While most of those affected are based in the United States, many have until early December to secure new positions within the company.
Although Google has not officially commented on the layoffs, this action aligns with a broader restructuring initiative across its departments. Earlier this year, the company offered voluntary departure packages in sectors like HR, advertising, hardware, marketing, and finance. It has also streamlined management by reducing the number of supervisors overseeing smaller teams. CEO Sundar Pichai has been clear about Google’s new direction, stating in recent employee meetings that artificial intelligence should be central to daily operations. “In this AI moment, we must achieve more by leveraging this transition to enhance productivity,” Pichai told staff, according to CNBC. He also cautioned that the company could no longer depend solely on workforce expansion to boost output.
This shift coincides with a significant increase in AI-related investments. Alphabet, Google’s parent company, recently revealed plans to allocate nearly $85 billion for capital projects in 2025, up from an earlier target of $75 billion. A substantial portion of this budget is anticipated to support new data centers and the infrastructure necessary for running advanced AI models. This trend is not exclusive to Google. Major tech companies across Silicon Valley are reconfiguring their workforces to prioritize AI. Microsoft laid off around 9,000 workers in July, while Meta has undergone several rounds of layoffs in the past two years. Amazon’s CEO Andy Jassy has also indicated a reduction in corporate staff as more processes transition to generative AI systems.
Leaders like Shopify’s Tobi Lutke and Microsoft’s Julia Liuson have echoed this sentiment: AI integration is now an expectation rather than an option. For Google, the downsizing has particularly impacted design and user experience teams, which have traditionally been pivotal in product development. Their diminished role underscores a strategic pivot, prioritizing AI integration and efficiency over conventional design research. Employees are now expected to showcase productivity improvements specifically through AI adoption. As of June 2025, Google had just over 187,000 employees, down from a peak of nearly 191,000 in 2023. The company had previously reduced 6 percent of its workforce early last year and has continued to make selective cuts.
At a recent all-hands meeting, Pichai recognized the challenges but expressed optimism about the company’s future. “We will enter a phase of significantly higher investment, and we must manage our resources carefully while striving for greater productivity and efficiency as a company,” he stated, emphasizing his positive outlook for what is to come.