Google closes Q1 2023 with a 9% drop in profits after its wave of layoffs

Alphabet, the parent company of Googlejust presented the results corresponding to the first quarter of 2023 from the tech giant. During that period, the income of the company reached 69,787 million dollars (63,178 million euros), which represents a their growth of 3% compared to the first quarter of the previous year.

For their part, the net profit fell 9.2% compared to 2022, standing at 15,051 million dollars (13,625 million euros). Even so, the figures obtained seem to have satisfied Google, especially after experiencing a difficult economic cycle that has led to the dismissal of 12,000 employees.

sundar pichaiCEO of Google, stated “we are happy with the performance of our business in the first quarter, with search performing well and momentum in the cloud. We introduced major product updates tied to deep computing and AI. Our star provides the most useful answers to our users and we see great opportunities on the horizoncontinuing our long history of innovation.”

Google’s advertising revenue suffers a slight decline

Regarding the distribution of income, the main source continues to be the google ad business. This raised 54.548 million dollars (almost €49,400M) and presents a minimal decrease in relation to the first quarter of 2022.

Likewise, Google’s advertising revenue is divided into what is collected by the Google network, YouTube ads and the search. The figure relating to the latter being the only one that experienced a growth, albeit slight (2%)reaching the 40.359 million dollars (about €36,540M).

For his part, as Pichai commented, the cloud business of the technological giant is progressing adequately. This increased your income by almost 22% compared to the previous year, standing at 7,454 million dollars (almost €6,750M).

The layoffs have cost Google 2,558 million dollars

Despite the fact that the data corresponding to the Google workforce shows an increase of almost 27,000 employees compared to the same period in 2022, the truth is that, as well explained in the report, These 190,711 workers “include practically all the employees affected by the reduction of our workforce“. From Google they hope that “the majority of those affected will no longer be reflected in our workforce at the end of the second quarter of 2023“.

Likewise, the results report indicates that The reduction in staff and offices has meant an expense of 2,558 million dollars (about €2,300M) for Google. Of this figure, 1,994 million dollars correspond to severance pay and related charges, while the remaining 564 million correspond to reductions in office space.

Photo: Depositphotos

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