Google Is Quietly Laying Off Employees From Its Cloud Division To Offset AI Spending: Report

Google is reportedly quitely laying off employees across its cloud division. In another round of tech layoffs to offset AI spending, a report from Business Insider suggests that Google is probably also doing the same.

The report citing anonymous sources states that the layoffs have been rolling through Google Cloud over the last fortnight. The cuts are not limited to a single team, multiple units within the division have been affected, including staff at Mandiant, the cybersecurity firm Google acquired in 2022 for roughly $5.4 billion. Some affected employees have already begun posting about their job losses on LinkedIn.

Google's top security unit was hit

Among the teams impacted is Google's Threat Intelligence Group, one of the company's most prominent security units. The group is known for regularly publishing research on hackers and nation-state cyber threats, making it a high-profile casualty of the cuts.

The Threat Intelligence Group was affected as recently as yesterday, the sources said.

Google's explanation: Reinvesting in AI

The full scale of the cuts, including the exact number of employees let go, remains unclear. However, in at least one instance, Google cited the need to redirect resources toward growth areas, particularly artificial intelligence, as the reason behind the move.

In a statement, a Google spokesperson said, "We regularly evaluate our internal structures to ensure we are best positioned to meet the evolving demands of our customers and the industry."

The company did not confirm the number of employees affected or which specific teams were impacted beyond what has been reported.

Part of a wider big tech trend

The Google Cloud cuts are the latest in a wave of layoffs sweeping through the technology industry this year, with AI investment increasingly cited as the driving force behind workforce reductions.

Meta cut 10 percent of its global workforce last month. Coinbase and payments firm Block both used AI transformation as justification for significant headcount reductions earlier in 2026. The cybersecurity sector has been particularly hard hit. Cloudflare laid off more than 1,100 employees last month as it repositioned itself for what it called the 'agentic AI era.'