Alphabet, the parent company of Google, is considering more spending cuts as part of its ongoing effort to meet its savings targets. This news comes after Google announced in February that it would be cutting its marketing budget in half and reducing its hiring plans for 2021.
Ruth Porat, the CFO of Alphabet, said in a recent earnings call that the company was exploring additional cost-cutting measures to ensure it meets its financial goals. Porat noted that while the company has made progress in reducing costs, there is still work to be done to achieve its savings targets.
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One area where Alphabet has already made significant progress is in its marketing budget. In February, the company announced that it would be cutting its marketing budget in half, from $18 billion to $9 billion. This move was seen as a significant cost-saving measure, as Google had previously been criticized for its lavish spending on advertising and marketing.
Alphabet has also reduced its hiring plans for 2021, with the company saying that it will be hiring at a slower pace than in previous years. This move is also part of the company’s efforts to reduce costs, as hiring can be a significant expense for any organization.
Despite these cost-cutting measures, Alphabet’s overall financial performance has been strong. The company reported revenue of $55.3 billion for the first quarter of 2021, up 34% year over year. Google’s advertising revenue, in particular, saw strong growth, with an increase of 32% year over year.
In recent weeks, Meta Platforms Inc. and Amazon.com Inc. have each announced a second wave of layoffs as the tech sector navigates a rough economic stretch.
However, Porat emphasized that Alphabet remains focused on achieving its savings targets and ensuring that the company is financially stable over the long term. She noted that the company is constantly evaluating its spending and looking for ways to reduce costs without sacrificing growth and innovation.
Alphabet’s ongoing efforts to cut costs and improve its financial performance are a sign of the company’s commitment to long-term success. While the company has faced criticism in the past for its spending habits, it is clear that Alphabet is taking steps to address these concerns and ensure that it remains financially strong and stable for years to come.