Google reported a $2.1 billion expenditure on layoffs in the previous year, covering severance packages and related costs for over 12,000 employees terminated in 2023. Despite recent layoffs of over 1,000 employees with an additional $700 million in compensation, the tech giant demonstrated overall growth in its core businesses, with a fourth-quarter revenue of $86 billion, reflecting a 13% increase compared to the same period in 2022.
The fourth-quarter earnings release highlighted consistent growth in Google’s digital ads and cloud computing sectors. Notably, Google Search remained the primary revenue source, generating $48 billion. CEO Sundar Pichai mentioned that the subscription and devices segment, encompassing services like YouTube Premium, YouTube Music, YouTube TV, and Google, contributed an extra $10.7 billion.
Although Google’s cloud business lags behind Microsoft Azure and AWS, its cloud division experienced a 25% year-over-year growth, reaching a revenue of $9.19 billion. The company also allocated $1.8 billion for office closures resulting from layoffs last year.
In an investor call, Pichai announced the imminent arrival of “Gemini Ultra,” with developers actively integrating it into Google products, beginning with Search. With increased focus on Gemini’s development, Google may streamline less profitable departments and initiate further layoffs this year.
