February 15 (UPI) — Google’s cloud computing business is cutting an unspecified number of jobs as part of an internal restructuring effort aimed at boosting the company’s position in the booming market for cloud computing,media reported. On Friday, local time, a Report in the Wall Street Journal reported that Alphabet’s Google said it was making “small layoffs” and would find new jobs for those affected.
“We have recently notified a few teams of restructuring, which will improve the way we market, collaborate and engage with customers across industries around the world,” a Google spokesman said in an email to the media. “
“We made a difficult but necessary decision, and that’s why we informed a small number of employees that their jobs would be cancelled,” the email said. We are working with relevant teams within our company to help those affected by this change and hope to find new roles within the company. “
Amazon and Microsoft are leading the market for cloud computing. This time Google is reorganizing its cloud computing business in an effort to strengthen competition with Amazon and Microsoft and boost its competitive position in order to gain more market share in the market.
Google reported this month that its cloud computing division, Google Cloud, had annual sales of $8.9 billion in 2019, up 53 percent from 2018 and doubling total sales in 2017. Alphabet, Google’s parent company, says its cloud business could generate $10 billion in annual sales. Ruth Porat, Alphabet’s chief financial officer, told analysts on a conference call for its fourth-quarter results that the cloud computing business was the sector that Added the most to Google’s workforce in the fourth quarter of last year.
The growth in Google’s cloud computing business pales in comparison to AWS, Amazon’s cloud computing business. Amazon’s cloud computing business made $2.6 billion in operating profit in the fourth quarter, or two-thirds of amazon’s total operating profit, compared with $9.95 billion in revenue for the quarter. Total revenue from Microsoft’s cloud computing business, including Azure and server sales, was $11.9 billion in the fourth quarter, up from $9.38 billion a year earlier. Revenue from Azure grew 62 percent.
On Thursday, Thomas Kurian, Google Cloud’s chief executive, said his cloud computing business was focused on five sectors: retail, healthcare, financial services, media and entertainment, and manufacturing. Mr. Curie previously worked for Oracle before becoming chief executive of Google Cloud.
“The solutions we build for these specific industries are highly differentiated,” Mr Curian told a conference in San Francisco by Goldman Sachs, an investment bank. “