Google has once again trimmed its workforce, this time cutting more than 100 positions within its cloud division. The layoffs, primarily targeting design-focused teams, come as the tech giant doubles down on artificial intelligence and streamlines spending in other areas.

According to a report by CNBC, the job cuts hit groups such as quantitative user experience research and platform and service experience—teams responsible for gathering user feedback, conducting surveys, and analyzing product usage to guide engineers and designers. In some cases, entire teams have been reduced by half. While the majority of affected employees are based in the United States, many have been given until early December to find new roles within the company.

Although Google has not officially commented on the layoffs, this move fits into a broader restructuring effort across its departments. Earlier this year, the company offered voluntary exit packages in areas like HR, ads, hardware, marketing, and finance. It has also reduced middle management layers, letting go of supervisors overseeing smaller teams.

CEO Sundar Pichai has been vocal about Google’s new direction. In recent employee meetings, he emphasized that artificial intelligence should be at the core of everyday work. “In this AI moment, I think we have to accomplish more by taking advantage of this transition to drive higher productivity,” Pichai told staff, according to CNBC. He also warned that the company could no longer rely on simply expanding its workforce to increase output.

The shift coincides with a massive surge in AI-related spending. Alphabet, Google’s parent company, recently announced plans to invest nearly $85 billion in capital projects for 2025, significantly higher than its earlier $75 billion target. Much of this budget is expected to fund new data centers and the infrastructure required to run advanced AI models.

This trend is not unique to Google. Across Silicon Valley, major tech firms are reshaping their workforces around AI. Microsoft laid off about 9,000 employees in July, while Meta has gone through multiple rounds of cuts over the past two years. Amazon’s CEO Andy Jassy has also signaled a shrinking corporate headcount as more processes shift to generative AI systems. Leaders like Shopify’s Tobi Lutke and Microsoft’s Julia Liuson have delivered a similar message: AI adoption is no longer optional, it’s an expectation.

For Google, the downsizing has been particularly tough on design and user experience teams, traditionally central to its product development philosophy. Their reduced role highlights a strategic shift, placing AI integration and efficiency above traditional design research. Employees are now being asked to demonstrate productivity gains specifically through AI adoption.

As of June 2025, Google employed just over 187,000 people, down from its peak of nearly 191,000 in 2023. The company had already cut 6 percent of its workforce early last year and has since continued to trim selectively.

At a recent all-hands meeting, Pichai acknowledged the challenges but maintained confidence in the company’s future. “We are going to be going through a period of much higher investment and I think we have to be frugal with our resources, and I would strive to be more productive and efficient as a company,” he said, while stressing that he feels “very optimistic” about what lies ahead.