Here’s how much money Google has spent on laying off employees
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One of the big reasons which companies give while laying off employees is: cost-cutting. Yet, it ends up costing quite a bit of money for them — at least in the short-term. Just ask Google — not the search but the company. According to the latest quarterly results posted by Alphabet, Google spent billions of dollars on employee layoffs. The numbers, released its quarterly earnings report today, revealing a substantial $2.1 billion charge for employee severance and related costs incurred during the company’s mass layoffs in early 2023. And that figure is just for 2023.
Google, which announced its cutting at least another 1,000 jobs in the first month of 2024, has already spent $700 million on layoffs.
The first round of layoffs, announced in January 2023, saw Google shed approximately 12,000 employees, representing roughly 6% of its global workforce. The move, attributed to economic uncertainty and a need to streamline operations, sent shockwaves through the tech industry, sparking concerns about a broader tech sector slowdown
The latest earnings report confirms the significant financial impact of the layoffs. The $2.1 billion charge represents a substantial cost, equivalent to nearly 7% of the company’s net income for the past year. While analysts had anticipated severance costs, the actual figure exceeded predictions, highlighting the human cost of restructuring efforts.
Google’s revenues keep growing
Despite the financial burden of the layoffs, Google’s revenue continued to grow, albeit at a slightly slower pace. Q4 revenue reached $86.3 billion, a 13% year-over-year increase, and full-year revenue for 2023 topped $307.4 billion. However, the growth fell short of analyst expectations, further underscoring the challenges the company faces in the current economic climate.
Google CEO Sundar Pichai has already hinted that layoffs will remain the order of the day in 2024. Pichai has said that it won’t reach the levels of 2023 but a lot of teams will be affected as Google continues to streamline its operations.
Google, which announced its cutting at least another 1,000 jobs in the first month of 2024, has already spent $700 million on layoffs.
The first round of layoffs, announced in January 2023, saw Google shed approximately 12,000 employees, representing roughly 6% of its global workforce. The move, attributed to economic uncertainty and a need to streamline operations, sent shockwaves through the tech industry, sparking concerns about a broader tech sector slowdown
The latest earnings report confirms the significant financial impact of the layoffs. The $2.1 billion charge represents a substantial cost, equivalent to nearly 7% of the company’s net income for the past year. While analysts had anticipated severance costs, the actual figure exceeded predictions, highlighting the human cost of restructuring efforts.
Google’s revenues keep growing
Despite the financial burden of the layoffs, Google’s revenue continued to grow, albeit at a slightly slower pace. Q4 revenue reached $86.3 billion, a 13% year-over-year increase, and full-year revenue for 2023 topped $307.4 billion. However, the growth fell short of analyst expectations, further underscoring the challenges the company faces in the current economic climate.
Google CEO Sundar Pichai has already hinted that layoffs will remain the order of the day in 2024. Pichai has said that it won’t reach the levels of 2023 but a lot of teams will be affected as Google continues to streamline its operations.
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