Google’s UK branch has cut its workforce by nearly 400 roles throughout the most recent fiscal year, with revenue nearing £3 billion, as per newly submitted accounts to Companies House. The London division diminished its employee count from 7,422 to 7,029 in 2024. During the same timeframe, Google UK’s revenue rose from £2.81 billion to £2.89 billion, whereas pre-tax profit grew from £373.8 million to £403.3 million. The company attributed the increase in service fees to heightened demand for its offerings, coupled with escalating employment and other expenses.
These changes follow Google’s recent promise to invest £5 billion into the UK economy, aligning with the launch of its inaugural owned and operated data centre in Waltham Cross. This investment, which encompasses capital expenditure and research and development over the upcoming two years, is intended to bolster AI-focused initiatives in science and healthcare, potentially generating over 8,000 jobs. The data centre, first announced in January of the previous year, is projected to cost almost £800 million.
Google is working to strengthen its foothold in the UK’s cloud sector, where it lags behind rivals such as Microsoft and Amazon. According to a report by the UK’s competition authority, Microsoft and Amazon each command roughly 40% of the market share.
In July, the UK government entered into a collaboration with Google Cloud to modernise public services, replace antiquated systems, and upskill 100,000 civil servants in digital and AI competencies by 2030. This partnership includes technical assistance for sectors such as the NHS to implement secure, cloud-based technologies.
At the same time, Google is facing a £25 billion lawsuit in the UK, as reported earlier this year. The lawsuit, initiated with the Competition Appeal Tribunal and spearheaded by Roger Kaye KC, accuses Google of exploiting its dominant role in the online search advertising sector, allegedly raising prices for UK advertisers for over a decade.
The action, which seeks compensation for 500,000 to 1.5 million UK advertisers who bought search ads from Google since January 2011, contends that Google’s arrangements with mobile manufacturers and network providers have suppressed competition, leading to “excessive and unfair prices” for search advertising. Kaye expressed that the lawsuit aims to restore a “fair and competitive landscape” and challenge Google’s monopolistic behaviours.
