Sources report that Google has reduced its workforce in its fast-growing cloud division by at least 100 jobs.

• Several teams within Alphabet's cloud unit, including sales and engineering, are facing layoffs.
• Google is cutting jobs across the company to prioritize the development of artificial intelligence.
• Google's cloud business is rapidly expanding, experiencing a fourfold increase in operating income in the latest quarter.

Google's cloud unit, one of its fastest-growing businesses, is laying off employees from several teams, CNBC has learned.

Last week, the company informed employees of the cloud cuts, resulting in the elimination of roles in sales, consulting, "go to market" strategy, operations, and engineering. At least 100 positions were affected, according to sources who requested anonymity due to the confidential nature of the layoffs.

Insider previously reported some details of the layoffs.

A Google representative informed CNBC that the company is making incremental cuts across teams to better align its go-to-market organization.

"The spokesperson stated that the company continues to adapt to its customers' needs and take advantage of the opportunities ahead, while maintaining its commitment to investing in crucial areas for its long-term success."

People familiar with the situation said that some who lost their jobs had worked on the company's annual Google Cloud Next event that took place in mid-April.

Since early 2023, Google has been conducting ongoing layoffs, resulting in complaints from employees about tight deadlines, limited resources, and reduced opportunities for advancement, despite the company's record profits.

Google recently let go of at least 200 employees from its "Core" organization, including important teams and engineering talent. However, CEO Sundar Pichai informed employees that the company would reduce layoffs in the second half of 2024.

Google Cloud's revenue increased by 28% to $9.57 billion in the latest quarter, surpassing expectations. Additionally, Google's operating income more than quadrupled to $900 million, indicating that the company is finally generating significant profits after investing heavily in the business for years to compete with Web Services and Microsoft Azure.

The pressure to accelerate growth in AI is intensifying for the cloud unit, headed by CEO Thomas Kurian.

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