Google’s Big Earnings Takeaways: AI, Google Cloud Profit, Hiring
From Google Cloud turning a profit for the first time to Google’s hiring outlook in 2023 and bold artificial intelligent vision, CRN breaks down the six biggest takeaways from Google’s first quarter 2023 financial earnings report.
Google Layoffs, Office Space Costs: $2.56 Billion
As a result of its 12,000 layoffs this year, employee severance and related charges totaled $2 billion during the quarter.
This represented the majority of expected costs associated with Google’s workforce reduction, according to Google.
Breaking down the employee severance and related charges: costs of approximately $835 million were on research and development; $445 million on sales and marketing; and $253 million on general and administrative (G&A) costs.
Additionally, Google “optimized” its global office space during the quarter by closing some offices. As a result of office space reductions, Google witnessed charges of $564 million during the quarter.
“We are taking concrete steps to manage our real estate portfolio to ensure it meets our current and future needs,” said Google’s CFO.
The Takeaway: Google wrapped up the layoffs of 12,000 employees and the reduction of its real estate space for a grand total of $2.56 billion. This should help boost Google’s operating income—which was $17.4 billion in first quarter 2023 compared to over $20 billion year over year—for the near future.