Google has cut a small number of roles in its Threat Intelligence Group and the broader cloud division, according to a Business Insider report.
- In one instance, Google cited the need to reinvest in growth areas, such as AI, according to the report.
- Last month, Meta announced it would reduce its workforce by 7,000 roles, or just under 10% of its workforce.
- Stocktwits sentiment for GOOGL shifted to ‘extremely bullish’ from ‘bullish.’
Alphabet shares inched 0.6% lower in early premarket trading on Friday, amid a broad-based selloff and profit booking in AI-linked names after chipmaker Broadcom issued a soft forecast.
Meanwhile, a new report published late Thursday said that the search giant had trimmed a small number of roles in the cloud division. Business Insider reported, citing its sources, that some cloud workers were laid off in the last two weeks, and certain members of Google’s Threat Intelligence Group earlier this week.
In one instance, Google cited the need to reinvest in growth areas, such as AI, according to the report.
The exact number of the affected employees wasn’t immediately known. In a response, a Google spokesperson told the news site: “We regularly evaluate our internal structures to ensure we are best positioned to meet the evolving demands of our customers and the industry.”
U.S. tech companies have shed tens of thousands of jobs in recent months as they redirect spending toward AI and AI-driven efficiency initiatives.
Tech Layoffs On A Rise
Amazon announced cuts affecting roughly 14,000 employees in March after eliminating 16,000 roles earlier in the year, while Meta unveiled plans to trim about 7,000 workers – just under 10% of its workforce – as part of its AI-first push. Coinbase, Block, and Cloudflare also laid off a sizable chunk of their workforce.
To be sure, Alphabet has implemented fewer large-scale cuts than some of its Big Tech peers, such as Meta. In January 2023, it announced the reduction of 12,000 jobs, or roughly 6% of its global workforce, as the tech industry grappled with a post-pandemic slowdown.
Since that time, there have been smaller, targeted cuts, impacting teams such as Google Assistant, hardware, engineering, advertising, and devices.
GOOGL Retail View, Stock Move
On Stocktwits, the retail sentiment for GOOGL shifted to ‘extremely bullish’ from ‘bullish’ early Friday, with traders saying the optimism was fueled by stake acquisitions by noted investors such as Berkshire Hathaway and Cathie Wood-led ARK Investment Management.
“$GOOGL the recent Berkshire and Cathie buys were not miscalculated. They are rising the spaces IPO through Googl who is expecting a bigger pay from the IPO. Patience pays $$$ than falling into shorty traps,” said a trader.
GOOGL shares are up 19% year to date, as of their last close.
For updates and corrections, email newsroom[at]stocktwits[dot]com.
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