On Account of Job Cuts, Google Takes USD 2.6 Billion Hit in 2023

Alphabet, the parent company of Google has incurred $2.6 billion in charges related to reductions in the workforce and office space in the first quarter of 2023.

The company, Alphabet also reported a revenue of $69.79 billion in the first quarter of 2023 in the month of January. It announced that it will fire almost 12,000 employees across the product areas, level and regions, and functions. As per the company, they took actions to optimise the global office space reductions of $564 million in the first quarter of 2023. They are in target to incur additional charges in the future as they further tried to evaluate the real estate needs.

Alphabet’s rival company Microsoft slashed 10,000 jobs and said in January that they are taking $1.2 billion charge in the second quarter. This is related to changes to hardware portfolio, severance costs, changes to hardware portfolio, and the cost of lease consolidation.

According to the reports, Microsoft has street estimation for its quarterly revenue, it reported a 7 percent jump in the revenue to $52.9 billion for the quarter ending in March 2023. As added by Satya Nadella, chairman and CEO of the Microsoft, while announcing the layoffs that US-benefit-eligible employees are supposed to get a variety of benefits which includes healthcare coverage for six months, above market severance and others.