Google Q4 Earnings Preview: Layoffs, Google Cloud And AI
Here are the most important things to watch for during Google’s fourth quarter 2022 financial earnings results on Thursday around layoffs, artificial intelligence and Google Cloud momentum.
What will Google CEO Sundar Pichai reveal about his company’s 12,000 layoffs currently underway?
How much of an operating loss did Google Cloud take during fourth quarter 2022? Does Google have an artificial intelligent surprise in store?
These questions and more will likely be answered during Google’s fourth quarter 2022 financial earnings results set for Feb. 2 at 4:30 p.m. ET when Pichai and other Google executives will field questions from analysts.
Google Cloud Earnings, Layoffs
Google’s fast-growing cloud business Google Cloud will be top of mind during the company’s earnings report on Thursday. The Mountain View, Calif.-based cloud company is one of Google’s most strategic technology assets alongside its artificial intelligence business.
For third quarter 2022, Google Cloud generated $6.9 billion in sales, up 38 percent from $5 billion in third quarter 2021—meaning the company’s annual run rate is roughly $27 billion.
However, top of mind for customers, partners and investors on Thursday’s call will be Google’s recent decision to lay off 12,000 employees worldwide.
Unlike other layoffs at large technology conglomerates and cloud competitors, such as Microsoft and Amazon, Google’s job cuts appear to have affected some of its technology professionals and veterans— such as Chris DiBona, an 18-year Google executive who was senior director of Google’s open source business; as well as Cat Allman, a 15-year Google executive who was recently let go of her position as program manager of Developer Ecosystems.
On Jan. 20 in a blog post to employees announcing the 12,000 layoffs, Google’s CEO said he’s confident about the “huge opportunity” ahead thanks to its products, services and investments in artificial intelligence.
“To fully capture it, we’ll need to make tough choices. So, we’ve undertaken a rigorous review across product areas and functions to ensure that our people and roles are aligned with our highest priorities as a company,” said Pichai. “The roles we’re eliminating reflect the outcome of that review.”