Despite the fact that its cloud business brought in $8.9bn in revenue last year, Google has revealed its plans to restructure its cloud group internally which will also include eliminating some positions.
A company spokesperson shared additional details on the restructure in an email with CNBC (opens in new tab), saying:
"We recently communicated organizational changes to a handful of teams that will improve how we market, partner, and engage with customers in every industry around the globe. We made the difficult, but necessary decision to notify a small number of employees that their roles will be eliminated."
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Thomas Kurian has been the CEO of Google Cloud for one year and during that time, he's made a number of changes to the search giant's cloud business including hiring additional sales people to better help the company compete against Microsoft and Amazon in the cloud computing space.
Google Cloud restructure
According to one person close to the company, Google Cloud's restructuring plans are geared at realigning focus on international markets and less than 50 current employees will be affected. While the company did not say exactly how many employees will be affected by the restructure, it did say that internal mobility teams will work to find them new roles within the company.
Kurian also outlined the company's strategy going forward in a recent keynote presentation (opens in new tab) in which he revealed that Google Cloud will target businesses in the retail, healthcare, financial services, media and entertainment and manufacturing industries.
For the first time ever, Alphabet recently revealed Google Cloud revenues in its fourth quarter earnings report. The company's cloud business brought in $8.92bn in revenue in 2019 which is up significantly when compared to the $5.84bn it generated in 2018.
While Google Cloud has has continued to grow at a steady rate, its revenue is far behind its largest rival, Amazon Web Services which brought in over $35bn in revenue last year.
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Via CNBC (opens in new tab)