Alphabet's Google cut employees in its cloud division, Bloomberg News reported on Wednesday, citing people familiar with the matter.

The layoffs follows a period of slower growth in Google’s cloud business and increased expenditure on AI initiatives.

Google is laying off some employees in its Google Cloud business. As reported by Bloomberg, and citing people "familiar with the matter," the cloud giant cut fewer than 100 jobs in the cloud department and focused on those working in sales operations.

Google has told staff in its “People Operations” and cloud organisations in the US this week that it is planning a layoff as part of an internal reorganization. This comes after chief financial officer (CFO) Anat Ashkenazi said that one of her top priorities would be more cost-cutting as Google missed its fourth quarter revenue expectations and is also looking to expand its spending on Artificial Intelligence (AI) infrastructure this year,