Google parent company Alphabet (GOOGL) has announced a new round of layoffs in its cloud computing and human resources units.
The Silicon Valley-based company says that the latest cuts are being undertaken as part of an internal reorganization. The exact number of people being let go isn’t known, but the layoffs are scheduled to occur in early March of this year.
Senior executives at Alphabet have said they plan to implement staff cuts throughout 2025 as they look to raise money that can be invested in the company’s artificial intelligence (AI) infrastructure. Alphabet has announced plans to spend $75 billion on its AI buildout this year.
Ongoing Cuts
The cuts to Alphabet’s cloud team are expected to mostly impact support staff and positions outside the U.S. Impacted employees will receive severance equivalent to 14 weeks salary and one additional week for every full year of service. Cloud computing continues to be one of the company’s high-growth areas and is benefitting from AI-integration within various products.
Earlier this year, Alphabet announced layoffs and offered buyout packages to staff in the company’s Platforms and Devices unit. That unit houses more than 25,000 employees who work on Android, Chrome, Pixel, Fitbit and Nest devices. Since 2022, Alphabet has cut more than 12,000 jobs following a hiring spree during the Covid-19 pandemic.
GOOGL stock has risen 22% in the last 12 months.
Is GOOGL Stock a Buy?
The stock of Alphabet has a consensus Moderate Buy rating among 37 Wall Street analysts. That rating is based on 27 Buy and 10 Hold recommendations assigned in the last three months. The average GOOGL price target of $215.85 implies 28.41% upside from current levels.