This article first appeared on GuruFocus.
Alphabet (NASDAQ:GOOGL) shares edged about 1% lower on Friday after a report said the company cut a small number of jobs in its cloud unit as it keeps shifting spending toward artificial intelligence.
Alphabet was also caught in a wider pullback in AI-linked names after Broadcom issued a softer outlook.
Alphabet said in one case that the changes were tied to reinvesting in growth areas such as AI, the report said. The exact size of the cuts was not clear, though Business Insider said some cloud workers and some members of Google’s Threat Intelligence Group were affected. Alphabet said it regularly reviews internal structures so it can respond to customer and industry needs.
Alphabet has been trimming jobs in targeted areas for some time as U.S. tech firms redirect resources into AI. The company’s stock remains up 19% this year, while retail sentiment on Stocktwits turned to extremely bullish from bullish, helped by fresh buying from Berkshire Hathaway and ARK Investment Management.
