Google Could Be Cutting Even More Costs, Its CFO Just Said
- Google warned that more cuts could be coming in its 2022 Q4 earnings report.
- It expects to spend $500 million to reduce office space and up to $2.3 billion in severance packages.
- The cuts come just weeks after Google announced that its laying off 12,000 employees.
Google just warned that more cuts could be on the way after a year when it’s already slashed jobs and other spending.
Chief Financial Officer Ruth Porat of its parent company, Alphabet, didn’t detail the possible cuts in the company’s fourth-quarter earnings report, but what she telegraphed was clear.
“We have significant work underway to improve all aspects of our cost structure in support of our investments in our highest growth priorities to deliver long-term, profitable growth,” she said.
Alphabet’s possible cuts come just weeks after Google announced that it will lay off 12,0000 employees as part of its measures to trim costs amid challenging economic conditions.
And the cost-cutting hint comes after big tech companies like Meta and Twitter laid off thousands of workers and eliminated lavish perks in an effort to save money, signaling that more cuts loom across the tech industry.
Meanwhile, Google could be paring back its office footprint even further than it already has, the company said.
Google said that it expects to incur costs in 2023 of $500 million to reduce office space. And as for job cuts, the company said it expects to pay between $1.9 billion to $2.3 billion in employee severance packages in just the first quarter alone.
CEO Sundar Pichai said on the earnings call that Google will slow the pace of hiring this year.