Shares in Mountain View, California-based Alphabet, which boosted its workforce by nearly a third through 2020 and 2021, rose 4% on Friday. They had fallen 30% in the past 12 months, echoing a 24% slump in the broader tech industrySundar Pichai, Alphabet's boss since 2019, said in the memo on Friday that he took "full responsibility" for the decisions that led to the layoffs.
Pichai, whose pay was recently tied more closely to performance, said this was a moment to "sharpen our focus, reengineer our cost base and direct our talent and capital to our highest priorities," as Alphabet looked to get imbue its products with more AI, echoing commentsAlphabet, long a leader in AI, is facing competition from Microsoft, which is reportedly looking toAdvertising dollars, Alphabet's mainstay revenue source, meanwhile, is feeling the squeeze from businesses...
"It is clear that Alphabet is not immune from the tough economic backdrop, with worries about a U.S. recession growing," said Susannah Streeter, an analyst at Hargreaves Lansdown. "Ad growth has come off the boil ... Competition is also heating up, with Alphabet facing a powerful rival in TikTok, and Instagram also vying for its important YouTube viewers," Streeter said, noting that Alphabet has also racked up billions in regulatory fines.
Evercore ISIS analyst Mark Mahaney said Alphabet's record-high headcount had created major margin risk going into fiscal 2023 and Bernstein analyst Mark Shmulik said the job cuts could save the company Alphabet $2.5 billion to $3 billion in costs.The logo of Google LLC is seen at the Google Store Chelsea in New York City, U.S., January 20, 2023. REUTERS/Shannon StapletonWith Alphabet's staff cuts, layoffs at four of the biggest U.S.
And these layoffs don't even match the headcount increase from last year. The answer is $GOOGL WAY over-hired for years.
Musk Slashes 3,000 employees- Google Slashes 12,000 employees- MS Slashes 10,000 employees- are they shrinking so widely and largely?
Welcome to capitalism.
Mel_BrooksSA Hahahahhahhahahahahaha!!! Learn to weld
Biden’s economy
So building an economy from 'the bottom up and middle out' means low-middle-income folks can barely afford food and higher-income folks lose their job. Sounds legit.
Google has a parent company?
Woke = broke
Brilliant. Go woke go broke
Re-arranging the Alphabet, how novel. Y and G should be removed permanently or at least their hidden agenda exposed. Little wonder Elon wants to colonize Mars. Big tech and pharma are gonna wipe us all out.
Out of 200k? Meaningless, just meant to boost stock values..
Let's all say it together... Get woke, go broke.
Less investment for the future and being realistic..
Thus commences the predictable and tiresome frenzy surrounding Artificial Intelligence. I have no doubt that there will be further instances in the future.
Complete waste of layoffs. A $250 billion revenue giant either lays off 30% indicating significant deterioration in ad business or lays off no one as it is a giant and sees only teeny tiny slowdown. Google leadership must answer lot of questions on this gimmicks.
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