Cloud Layoffs Cast Cloud over Google's Future
Google has made significant cuts to its cloud division, impacting a few teams according to people familiar with the matter. The retrenchment comes as the company faces slower growth from its cloud business, as well as massive spending on artificial intelligence. Alphabet missed analysts' revenue projections for cloud in January, and its guidance for 2025 capital expenditures also exceeded expectations.
- The widespread layoffs across the tech industry could create a skills shortage that favors companies investing heavily in emerging technologies like AI over those prioritizing cost-cutting.
- How will Google's investments in AI technologies be viewed by regulators if it continues to prioritize growth over profitability, potentially leading to increased scrutiny of the company's business practices?