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Google has laid off over 100 employees in its Cloud division this week, primarily affecting roles in design and user experience research just like Coinbase did months ago. Reports from CNBC and Business Insider confirmed that impacted staff of the Google Cloud Layoffs received emails on Monday announcing their positions were being eliminated. Internal documents and LinkedIn posts from affected workers revealed that quantitative user experience research teams and platform and service experience teams were the most severely impacted. Additionally, these roles help analyze user behaviour and guide product development using data and surveys.
According to sources, Google Cloud has reduced some design teams by nearly half. Furthermore, many affected roles are based in the United States, and some employees have until early December to find new internal roles. One laid-off worker on an O-1 visa mentioned having only 60 days to secure a new position or face deportation.
Despite the Google Cloud layoffs, the company’s cloud business continues to show strong growth. Notably, the unit reported $13.6 billion in revenue for Q2 2025, representing a 32% year-over-year increase. Interestingly, operating income reached $2.8 billion, marking a record performance for Google Cloud.
Google Cloud Growth Amid Efficiency Push
Google Cloud CEO Thomas Kurian recently highlighted a $106 billion backlog at a Goldman Sachs conference. It’s important to note that over half of that figure is expected to convert to revenue within two years. Kurian emphasized Google Cloud’s focus on operational discipline to improve profit margins, despite the recent layoffs.
Additionally, Google Cloud layoffs are part of Google’s broader restructuring efforts for 2025. The company has offered voluntary exit packages across divisions, including HR, hardware, search, ads, marketing, and finance. More than one-third of managers overseeing small teams have also been cut this year.
CEO Sundar Pichai told employees in August that Google must operate more efficiently as it scales AI infrastructure investments. He stressed that the company can’t “solve everything with headcount.” TechPolyp suggests that the statement signals Google’s intention to balance growth with operational efficiency while pushing further into artificial intelligence.
The Google Cloud layoffs reflect this shift. While financial results remain strong, the company is streamlining operations to sustain profitability. For employees, the changes bring uncertainty, but for Google, they mark a recalibration toward long-term efficiency and AI-driven growth.
