SOURCE : DNA INDIA NEWS
Alphabet, Google’s parent company, disclosed this information alongside its Q4 earnings report.
In a financial move that raised eyebrows, Google, the tech giant, spent a whopping $2.1 billion in 2023 on severance and related expenses, letting go of over 12,000 employees, according to a report by The Verge.
The trend continues in 2024, as the company has already shelled out $700 million in severance charges for over 1,000 additional layoffs this year. Alphabet, Google’s parent company, disclosed this information alongside its Q4 earnings report.
Surprisingly, despite the significant layoffs, Google experienced growth in its key business areas throughout 2023. Q4 2023 brought in $86 billion in revenue, a 13 per cent YoY increase. The search engine, a major revenue source, saw a nearly 13 per cent YoY jump, bringing in $48 billion. Subscription services and devices, including YouTube Premium and Music, YouTube TV, and Google One, contributed $10.7 billion to the total.
CEO Sundar Pichai credited this growth to Google’s investments in generative AI. Pichai referred to 2024 as Alphabet’s “Gemini era,” with Gemini being the AI language model expected to work across all Google products. An updated version, Gemini Ultra, is in the works, starting with integration into the Search function.
While Google remains the third-largest global cloud provider, it gained traction in 2023, reporting a 25.6 per cent YoY increase, amounting to $9.19 billion in revenue for Google Cloud. However, the success didn’t come without a cost, as layoffs and real estate cutbacks, especially in the pricey Bay Area, resulted in a total expenditure of $1.8 billion for office space closures in 2023.
Looking ahead, Google’s commitment to the “Gemini era” signals further layoffs in 2024 as the company reallocates resources to advance its AI initiatives. Despite the financial hits, Google seems determined to forge ahead in the ever-evolving tech landscape.
