Tech

Google Cloud is terminating and outsourcing dozens of support roles in its latest move to cut costs

Google Cloud CEO Thomas Kurian at Google Cloud Next 2019
Google Cloud CEO Thomas Kurian at Google Cloud Next 2019 Google
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Google Cloud is terminating dozens of support roles as part of a reorganization within the unit, Insider has learned.

The company informed relevant employees this week that their roles were being eliminated and said it would be consolidating other teams in select regions and shifting some responsibilities to vendors, according to emails seen by Insider and two people familiar with the matter. 

Google Cloud's support teams, known as technical solutions engineers, help customers and engineers when they're having problems with Google Cloud applications. They also build internal products to assist with support.

The cuts will help the unit save money. Google grew cloud revenue 45% year on year in the fourth quarter to $5.5 billion. However, the division is still unprofitable and trails behind Amazon Web Services and Microsoft Azure in the market. Insider previously reported that Google Cloud has been focusing on hiring for customer support roles in Mexico City as a cost-cutting move. 

The cuts affect support engineers in California, Austin, Zurich, and Sydney, according to the people familiar, who asked not to be identified discussing sensitive matters. They also stretch across a variety of Cloud products including Looker, the data analytics company Google acquired for $2.4 billion in early 2020.

Employees who are losing their jobs have been given 60 days to find new positions within the company. Those who don't will be eligible for severance, according to an email seen by Insider.

"To build a sustainable operating model that enables us to delight and improve Googler wellbeing over time, we are accelerating our strategy to move some work to our Support hubs and vendors and are restructuring our operations to create further efficiencies," Google's Cloud support VP Atul Nanda wrote in one of the emails to staff on Thursday.

He later added: "We realize that reorganizations can be difficult, and we did not make these decisions lightly."

In a different email sent to support staff, employees were told that Google would reshuffle its support organization into four teams: Google Cloud, Looker, Workspace, and M&A. Workspace refers to Google Cloud's suite of cloud productivity software previously known as G Suite. 

A Google spokesperson told Insider in a statement: "As Google Cloud grows, we frequently evaluate our approach to providing the best service and support for our customers. The changes announced today will ensure we have the right people, partners, and systems in place to meet our customers' needs now and into the future."

Do you work at Google Cloud? Got a tip? Contact this reporter via email at rmchan@insider.com, Signal at 646.376.6106, Telegram at @rosaliechan, or Twitter DM at @rosaliechan17. (PR pitches by email only, please.) Other types of secure messaging available upon request.

Contact reporter Hugh Langley via encrypted email (hlangley@protonmail.com) or encrypted messaging apps Signal/Telegram at +1 628-228-1836. 

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Rosalie Chan
Rosalie Chan is a senior editor for Business Insider's tech team. Previously, she covered cloud computing and enterprise tech, reporting on companies like Google Cloud, Amazon Web Services, Microsoft, Intel, Alibaba Cloud, Atlassian, GitHub, VMware, Broadcom, and more. She has written extensively on topics including cloud computing, developer companies, open source, and sexism and sexual harassment in the tech industry. She has received the San Francisco Press Club award for continuing coverage for her reporting on sexism and sexual harassment in Silicon Slopes and the Excellence in Business / Consumer / Tech Reporting award from the Asian American Journalists Association for her investigation into the coding boot camp Holberton School. Most recently, she was an editor on the Business Insider investigative package, The True Cost of Data Centers, which received a George Polk Award and an honorable mention from SABEW.Rosalie joined Business Insider after working as a software engineer and freelance journalist. She studied journalism, computer science, and technology and business law at Northwestern University. Her work has previously appeared in TIME, the Huffington Post, VICE, Pacific Standard, Inverse, Chicago magazine, the Chicago Reporter, and more. She's based in San Francisco.
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Hugh Langley
Hugh is a senior correspondent at Business Insider where he writes about Google, tech, and wealth. His work has been cited by The New York Times, Bloomberg, Reuters, The Wall Street Journal, and other outlets.Get an alert whenever I publish a story.Got a tip? You can reach him using the secure messaging app Signal (hughlangley.01) or email (hlangley@bjinnox.com). We can keep sources anonymous.