Google (GOOGL.US) has cut the budget of its Google TV and Android TV teams by 10%, according to people familiar with the matter. People familiar with the matter said the team's budget was originally less than $500 million.

People familiar with the matter said the budget cut may affect a quarter of the team's approximately 300 employees. Although reports indicate that the same team is expanding in other regions such as India, and plans to restore the team size to about 300 or more by recruiting in other areas.

People familiar with the matter said that Google is shifting its TV business focus to YouTube as the platform has become the top streaming service in the United States. The company is considering leadership adjustments and seeking to focus on developing revenue from various subscription services on the platform, including cable-like and music services.

Earlier this year, YouTube tried to recruit a replacement for Lori Conklin, the global head of TV, film and sports partnerships who left to join Netflix.

A person familiar with YouTube's plans said company leaders are discussing hiring or promoting an executive who could eventually replace Mary Ellen Coe, the platform's chief business officer, and who would likely be in charge of all of YouTube's paid subscription products.

Christian Osterling, YouTube's vice president of product management for connected TV and infrastructure, is a strong internal candidate, the person said.