Google to restructure Cloud business, as some roles to be removed

Google is restructuring its Cloud group internally, which will involve eliminating some roles, a Google spokesperson confirmed media news circulated by Dow Jones on Friday.

“We recently communicated organisational changes to a handful of teams that will improve how we market, partner, and engage with customers in every industry around the globe,” a company spokesperson said in an email to CNBC.

“We made the difficult, but necessary decision to notify a small number of employees that their roles will be eliminated.”

The restructuring comes as chief executive Thomas Kurian has been at the helm for one year. In that time frame, Kurian has made a number of changes, mostly additions to the headcount, which he and Alphabet chief executive Sundar Pichai have boasted of over the last few quarters.

The restructuring is primarily meant to re-align focus on international markets and affects fewer than 50 employees, a person close to the company told CNBC. Google would not comment on how many employees are affected or which areas within the Cloud business would be affected, only saying it is working with internal “mobility teams” to find the employees new roles within the company.

“We are grateful for everything they have accomplished and their commitment to Google Cloud,” the spokesperson added.

Kurian this week outlined Google’s strategy, which included pursuing five industries: retail, health care, financial services, media and entertainment, and manufacturing.

Alphabet broke out Cloud revenue numbers for the first time, according to its fourth-quarter earnings report. Google’s cloud business made $8.92 billion in revenue in fiscal 2019, up from $5.84 billion in 2018, and the company claims it is on a $10 billion annual run rate.

Source: CNBC