Alphabet CEO Sundar Pichai announced that the business plans to lower its recruiting rate in the fourth quarter of 2022 and the following year 2023. The company’s third-quarter revenue climbed at its slowest rate in more than two years, signaling that the internet advertising industry is still slowing.
“We’re focusing our efforts on a few core product and commercial initiatives. Our recruiting in Q4 will be significantly lower than in Q3. Furthermore, as we plan for 2023, we will continue to make significant trade-offs where necessary and will be focused on minimizing the growth of operating expenses.” This was stated by Pichai during the company’s earnings call on October 25.
Alphabet, Google’s parent company, said it employed 12,765 people in the third quarter, including 2,600 as part of the Mandiant acquisition, bringing its total global workforce to 186,779 people.
Alphabet CFO Ruth Porat remarked during the call that “Headcount additions (in Q4) will be less than half of what they were in Q3. They will, however, continue to hire “for key positions, with a particular emphasis on top engineering and technical talent.”
Pichai added that they began a push to achieve efficiency in the previous quarter by reallocating resources to invest in their “biggest growth opportunities” and shifting away from various lower-priority tasks. This includes shutting down Stadia, canceling the next Pixelbook laptop, and dissolving the device’s development team.
“Because talent is the most valuable resource, we work hard to ensure that everyone we hire is focused on the most important aspects of the organization. We are thoroughly evaluating efforts at all levels to ensure that we have the necessary strategies in place, the right resources and that we are on the right track. This is something we will keep doing until 2023 “According to Pichai.
They will “invest intelligently for the long run in a manner fit to the current economic climate,” he said. Alphabet’s net income for the quarter was $13.9 billion, a 26.5 percent reduction from $18.9 billion the prior quarter.
Revenues climbed by 6% to $69.1 billion for the quarter, a notable slowdown from the previous year’s increase of 41%, as advertisers curtailed spending in several areas such as insurance, loans, mortgages, and cryptocurrency.
YouTube’s advertising revenue for the quarter decreased to $7.07 billion, down from $7.2 billion in the same quarter last year, marking the platform’s first decline since the internet giant began disclosing financial performance in 2020.
Google’s search revenue increased by 4% year on year to $39.5 billion, led by the travel and retail sectors, while overall advertising revenue increased by 2.5 percent year on year to $54.5 billion.
Alphabet Inc., headquartered in Mountain View, California, is a worldwide technology company. It was founded as a result of a Google restructuring on October 2, 2015, and it became the parent company of Google and several prior Google subsidiaries.
Alphabet is the third-largest technology business by revenue and one of the most valuable corporations in the world. Along with Amazon, Apple, Meta, and Microsoft, it is one of the “Big Five” American information technology businesses.
Also Read : Layoffs continues as Philips announces to reduce employee strength by 4000
207 total views, 1 views today