Google cuts at least 100 jobs across fast-growing cloud unit, sources say
Thomas Kurian, CEO of Google Cloud, speaks at a cloud-computing conference held by the company in 2019.
Michael Short | Bloomberg | Getty Images
Alphabet is laying off employees from several teams in Google’s cloud unit, one of its fastest-growing businesses, CNBC has learned.
The company notified employees last week of the cloud cuts, with roles being eliminated in sales, consulting, “go to market” strategy, operations and engineering, according to internal correspondence viewed by CNBC. At least 100 positions were cut, said people familiar with the matter who asked not to be named because they weren’t authorized to speak about the layoffs.
Insider previously reported some details of the layoffs.
A Google spokesperson told CNBC the cuts are incremental across teams to better align its go to market organization.
“As we’ve shared before, we continue to evolve our business to meet our customers’ priorities and the significant opportunity ahead,” the spokesperson said. “We maintain our commitment to investing in areas that are critical to our business and ensure our long-term success.”
Some of those who lost their jobs had worked on the company’s annual Google Cloud Next that took place mid April, said people familiar with the situation.
Google has been conducting ongoing layoffs since early 2023. Employees have since complained about demands that they work on tighter deadlines with fewer resources and diminished opportunities for internal advancement even as the company records record profit.
Last month, Google cut at least 200 employees from its “Core” organization, which included key teams and engineering talent. CEO Sundar Pichai told employees that the company would make fewer layoffs in the second half of 2024.
Revenue in Google Cloud, which houses much of the company’s AI technology, jumped 28% from a year earlier to $9.57 billion in the latest quarter, sailing past estimates. Operating income more than quadrupled to $900 million, showing that Google is finally generating substantial profits after pouring money into the business for years to keep up with Amazon Web Services and Microsoft Azure.
However, the cloud unit, led by CEO Thomas Kurian, has been under pressure to continue accelerating growth as competition heats up in AI.
Thomas Fuller | Lightrocket | Getty Images
Reddit shares popped about 5% after the social media company debuted new artificial intelligence-powered advertising tools.
The two new features, announced Monday in a post during the Cannes Lions festival, will help brands better leverage discussions on the platform. The company said the tools are powered by an engine called Reddit Community Intelligence that turns “posts and comments into structured intelligence.”
Reddit announced a “listening tool” called Reddit Insights, which shares real-time insights with marketers to help them identify trends and launch campaigns. The other tool, called Conversation Summary Add-ons, allows brands to show “positive” user content under their ads.
“These are tools for a new era of community marketing, one where brands can tap into Reddit’s authenticity and connect meaningfully with high-intent communities around the world,” the company wrote.
The company said Publicis served as the exclusive alpha tester for Reddit Insights, while Lucid and Jackbox Games were among the early testers for Conversation Summary Add-Ons.
Companies across industries are betting on new ways to harness AI to improve advertising campaigns and better engage with users. These new tools are transforming the industry while also putting pressure on some advertising stalwarts.
The industry is also currently navigating a bumpy environment spurred by the trade war with China.
During the recent earnings season, many companies warned of sluggish advertising sales in certain regions due to a rocky macroeconomic environment. Recent developments, however, have suggested a cooling of tensions between the U.S. and China.
Last month, Reddit posted strong sales and upbeat guidance. The company has benefited from recent changes to Google search and internal site improvements, which include convincing logged-out users to open accounts. Logged-in accounts are more beneficial to advertisers.
WATCH: Outgoing WPP CEO says AI will ‘revolutionize’ advertising business
Helsing uses AI to analyze large amounts of sensor and weapons system data from the battlefield.
Pavlo Gonchar | Sopa Images | Lightrocket | Getty Images
European defense technology startup Helsing on Tuesday said that it’s raised 600 million euros ($693.6 million) in a bumper new round of funding.
The investment was led by Prima Materia, the venture capital firm founded by Spotify CEO Daniel Ek and by Shakil Khan, an early investor in the popular music streaming app. Ek is also chairman of Helsing.
Existing investors Lightspeed Venture Partners, Accel, Plural, General Catalyst and Saab also put money in, alongside new investors BDT & MSD Partners.
Defense and the technology behind it have become a hot area for investors lately, amid major global conflicts, including the Ukraine war to Israel-Gaza. Last week saw a further escalation of war in the Middle East as Israel launched a series of airstrikes against Iran.
In 2024, venture funding in Europe’s defense, security and resilience sector reached an all-time high of $5.2 billion, according to a recent report from the NATO Innovation Fund. The sector grew 30% in the past two years, outperforming the broader VC market, which saw a 45% decline over the same period.
Founded in 2021, Helsing sells software that uses artificial intelligence technology to analyze large amounts of sensor and weapons system data from the battlefield to inform military decisions in real time. Last year, the startup also began manufacturing its own line of military drones, called HX-2.
Helsing, which operates in the U.K., Germany and France, said it would use the fresh cash to invest in Europe’s “technological sovereignty” — which refers to attempts to onshore the development and production of critical technologies, such as AI.
“As Europe rapidly strengthens its defence capabilities in response to evolving geopolitical challenges, there is an urgent need for investments in advanced technologies that ensure its strategic autonomy and security readiness,” Ek said in a statement out Tuesday.
Helsing did not disclose its new valuation following the latest financing round, which is subject to “certain approvals,” according to a statement. The firm was previously valued at around 5 billion euros in a 450 million euro funding round led by General Catalyst last year.
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