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Google and Microsoft have both cut hundreds of employees from their cloud business, with reasons for the layoffs still unclear. Both companies reported positive results in cloud services last quarter, but it’s possible that the cuts were due to declining business or efficiencies in generative artificial intelligence (GAI). The layoffs impacted teams including Azure for Operators and Mission Engineering at Microsoft, and roles in sales, operations, engineering, consulting, and “go to market” strategy at Google. Despite the layoffs, both companies saw growth in their cloud revenue, with Google’s driven by demand for GAI tools.
